Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey by Agence Française de Développement

Agence Française de Développement

Working Paper

November 2006

Vocational Training in the Informal Sector Report on the Ethiopia Field Survey

Research financed by GTZ (Gesellschaft für Technische Zusammenarbeit) Richard Walther, ITG Consultant (walther.richard@wanadoo.fr)

Translation: Adam Ffoulkes Roberts DEPARTEMENT DE LA RECHERCHE

Agence Française de Développement 5 rue Roland Barthes 75012 Paris - France Direction de la Stratégie www.afd.fr Département de la Recherche

Foreword This report is an integral part of the survey and analysis work launched by the Research Department of the French

Development Agency (Agence Française de Développement, AFD) on training in the informal sector in five African countries

(South Africa, Benin, Cameroon, Morocco and Senegal). It was commissioned by the French Ministry of Foreign Affairs and

uses the same working assumptions as those applied to the other countries studied. It is also complementary to the report on

Ethiopia, which was produced on behalf of the German technical co-operation agency (GTZ) and also used the methodological framework developed by the AFD.

The Angola field survey was carried out with extensive support from the French Embassy. However, the objectives could not

have been met without assistance from Emilio Ferreira and Fernando Madeira, experts with the firm HRD (Human Resources

Development) who helped the field survey mission to interpret the subtleties embedded in certain situations and accounts of

different experiences. Above all, they were able to convince certain people with little availability that they should provide the

survey team with information and analysis coming under their area of authority. The survey benefited from the expertise of

Anna Sofia Manzoni., who helped to identify the most legitimate Angolan representatives in the area studied and also provided her support in identifying documentary sources on the subject. The survey also benefited from the extremely useful help

of Abel Piqueras Candela, of the European Commission, who agreed to make a critical appraisal of the final report and nota-

bly checked that the sources quoted really do reflect the most recent changes in the country’s education and vocational trai-

ning policies.

Lastly, this report was also able to draw on extensive and very useful documentation, notably thanks to the representatives of

the European Commission Delegation, the UNDP, the DW, USAID and IDIA. They are very warmly thanked for their contributions.

Working Paper N° 15 : Vocational Training in the Informal Sector - Concept Note.

Working Paper N° 16 : Vocational Training in the Informal Sector – Report on the Morocco Field Survey.

Working Paper N° 17 : Vocational Training in the Informal Sector – Report on the Cameroon Field Survey. Working Paper N° 19 : Vocational Training in the Informal Sector – Report on the Benin Field Survey.

Working Paper N° 21 : Vocational Training in the Informal Sector – Report on the Senegal Field Survey.

Working Paper N° 30 : Vocational Training in the Informal Sector – Report on the South Africa Field Survey. Working Paper N° 34 : Vocational Training in the Informal Sector – Report on the Ethiopia Field Survey. Working Paper N° 35 : Vocational Training in the Informal Sector – Report on the Angola Field Survey.

The Ethiopian case study has been produced by the GTZ in partnership with the AFD as a part of efforts to align the action of French and German development agencies.

Disclaimer The analysis and conclusions of this document are those of the authors. They do not necessarily reflect the official position of the AFD or its partner institutions.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

Table of contents 1.

Introduction: Ethiopia, a country waking up to the reality of the informal sector

1.1.

How the survey was carried out

The contribution of existing reports and studies

The country’s economic and social challenges

2.1.

Growth is strong, but vulnerable to climatic and political conditions

1.2.

2.2.

2.3.

2.4.

2.4.1.

Persistent poverty

Major educational needs

An essentially rural and informal labour force

A strong contrast between rural and urban activities

4 4

2.4.2.

Difficulties in appraising the informal sector as a whole

Vocational training reform geared to the economic and social challenges

3.1.

3.2.

Current state of TVET

Towards a reform focusing on those concerned in the informal economy

The reform implementation process

3.2.1.

The main thrust of the reform

3.2.3.

The challenges of reform: moving from an institutional to a grassroots approach

Current training initiatives in the informal sector

4.1.

The reality of traditional apprenticeship – a difficult issue

3.2.2.

4.2.

Public policies targeting the creation of micro activities

4.2.2.

The Dire Dawa REMSEDA’s integration and support role

On-site training for MSEs in the building sector (GTZ)

The ILO survey and the profile of women entrepreneurs

4.2.1.

FEMSEDA entrepreneur training

4.2.3.

The Addis Ababa weavers’ training project (ILO)

4.3.

The strategic role of women in the informal sector

4.3.2.

Dire Dawa Women Entrepreneurs Association (DDWEA)

4.2.4.

4.3.1. 4.3.3.

30 31

Dire Dawa Women’s Association (DDWA)

Varied experiences from the world of agriculture

4.3.4.

A training programme for empowering women

4.4.1.

The highly informal nature of employment in rural areas

4.4.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

Table of contents

4.4.2.

4.4.3.

4.4.4.

Training farmers and agricultural development officials

Training the rural population in community skills training centres (CSTC)

4.4.5.

The innovative activities of the Harar technical and agricultural training centre

NGO actions

Future developments and actions

5.1.

TVET reform and the opportunities for the informal sector

The TVET system: skills assessment and certification for informal sector workers

5.1.1. 5.1.2.

5.2.

5.2.1.

5.2.2.

5.2.3. 5.3.

5.3.1.

5.3.2.

5.3.3.

5.3.4. 5.3.5.

Training institutions can ensure that training becomes an effective aspect of social and economic development

The outreach of reform in the informal sector

The low impact of the training system on the informal sector

TVET reform and the lack of recognition of skills development processes in the informal economy

The challenge of revitalising the informal sector

A paradigm shift with limited effects

Looking closely at the real potential of traditional apprenticeship and self-learning methods

The need for a qualitative analysis of informal economy occupations

The need to go through with plans to recognise skills acquired in the informal sector

How to have informal sector workers take on responsibility for their own training and skills

In conclusion: the need to refocus the reform on grassroots initiatives

Appendix: recommendations and proposals for action

List of acronyms and abbreviations

References

The need to strengthen sectoral, territorial and institutional dynamics

ÂŠ AFD Working paper No 34

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

Introduction: Ethiopia, a country waking up to the reality of the informal sector

The Ethiopian government is undertaking a complete

or to identify the traditional methods used for acquiring

wants the informal sector to be included in any changes.

expressed and there was much debate as to the existence

reform of its education and vocational training system and

This is an ambitious strategy, which will entail a complete overhaul of the education and training system, focusing on

outcomes and responding to the economy’s needs, thus contributing to the country’s development. It will also mean

integrating the different kinds of training systems (formal,

knowledge and know-how. Differing opinions were or otherwise of traditional forms of apprenticeship. It was as if the informal sector was viewed in terms of the role

assigned to it by the reform, rather than by taking account of the actual situation and trends.

non-formal, informal) into an overall approach focusing on

In this respect, Ethiopia is at a crossroads. Domestic work-

means. This shift from a unified system to a flexible and

vendors, small-holders vulnerable to the vagaries of the

skills that have previously acquired, through whichever modular one, and from a qualification-based paradigm to one based on acquired vocational skills, offers a real oppor-

tunity for those working in the informal sector to obtain

ers, women involved in income-generating activities, street

weather and all the micro-enterprises involved in production

and service activities will not see any lasting improvement

in their situation unless the reform acknowledges the reali-

recognised qualifications. The reform notably includes

ty of this situation and take steps to improve it. Moreover,

acknowledge not only skills acquired through experience

all those involved in economic production unless it takes

plans for Centres of Competence whose purpose will be to and work, but also those obtained through the various existing types of training.

However, the inclusion of informal sector workers among the beneficiaries of the reform is not as easy as it sounds.

the reform will not succeed in achieving its aim of training

account of the sector as it exists, and, more importantly,

unless it involves and exploits the potential of existing stakeholders, partners and trends.

The operational success of the current reform will undoubt-

The various officials met during the survey will have to

edly enable Ethiopia’s informal sector to shift from a para-

my. This will not come easily. During our interviews, for

However, this will only happen if the reform, which is

figures concerning the informal sector’s role in the labour

the sector’s human and vocational capital, first of all helps

acknowledge the reality of the informal sector and econoexample, it was difficult, if not impossible, to obtain precise

market or its contribution to national wealth. It was even

more difficult to gain any idea of the real situation concern-

ing production and service activities in the informal sector,

digm of mere survival to one of growth and development.

designed to facilitate the recognition and accreditation of

to develop and enhance what already exists instead of pur-

suing its own training agenda.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

1. Introduction: Ethiopia, a country waking up to the reality of the informal sector

1.1. How the survey was carried out The Ethiopia field survey differs from those carried out in

the other countries in that it is the result of a fruitful part-

in the current process of vocational training reform.1 The

survey was carried out between 5 and 16 September 2006.

nership between German and French development agen-

It started in Addis Ababa, where meetings were held with

(Gesellschaft für Technische Zusammenarbeit - GTZ),

els in the various ministries involved in vocational training.

cies, namely the German Technical Co-operation Agency

which provides technical assistance to the Ethiopian

the various officials responsible at federal and regional levMeetings took place with the major international organisa-

authorities in the design and delivery of the reform of tech-

tions involved in this field, as well as with national employ-

French development agency (Agence Française de

meet some of the actors working closely with those eco-

the study on vocational training in the informal sector.

After the interviews in the capital, the survey was complet-

nical and vocational education and training (TVET), and the

Développement – AFD), which has overall responsibility for

The Ethiopia survey reflects the desire of the German and

French agencies to align their thinking and efforts in the

education and training field. It was funded under the Ethio-

German TVET project, which started in 1999, and was organised further to a joint agreement between the

Ethiopian education authorities and German technical

assistance providers. The various German development aid

agencies constitute the largest donor and support provider

ers’ and trade union federations. It was also possible to

nomically and professionally active in the informal sector.

ed by a field trip to the Dire Dawa region, where it was possible to interview project leaders working with micro-enter-

prises and production and service units, as well as some of

the workers who actually benefited from the training and

skills development activities. These meetings were particu-

larly useful in that they shed light on the real situation in the

informal economy and the way in which those working in it are trying to raise themselves above subsistence level.

1.2. The contribution of existing reports and studies Unlike Morocco and Cameroon, Ethiopia has not undertak-

ic growth and reduce poverty. It also includes useful data for

en any specific national surveys on the informal economy.

this study, notably regarding what is happening in the edu-

vey such as those carried out for the major capital cities of

small enterprises (MSEs) can improve national economic

Neither has Addis Ababa been the subject of a specific sur-

West

Africa.2

However, the 2005 Labour Force Survey car-

ried out by the Central Statistical Agency (CSA) of Ethiopia3 provides some data which can be used to make an objective appraisal of the significance and role of those working

in the informal sector.

However, current data and forecast trends concerning the economic, social and educational situation are widely avail-

able. The Plan for Accelerated and Sustained Development

to End Poverty (PASDEP),4 published in October 2005, fol-

lows on from the Sustainable Development and Poverty

Reduction Program

(SDPRP).5

It describes in detail the

progress made since 2000 and sets out the major policies

and means required to enable Ethiopia to achieve econom© AFD Working paper No 34

cation and training area and how efforts to boost micro and

growth and reduce unemployment, and on the strategic

sectors and market niches which have job growth potential.

This plan thus combines economic strategy, a skills devel-

1 German technical assistance in the reform of TVET is being supported by most institutions or organisations specialised in international development aid: the Centre for International Migration (Center für Internationale Migration - CIM), the German Development Service (Deutscher Entwicklungsdienst - DED), Capacity Building International (Internationale Weiterbildung und Entwicklung gGmbh - InWEnt) and Senior Expert Service (SES). The GTZ, which is the technical cooperation agency, is responsible for coordinating all of the partners involved. The German Development Bank KfW also provides financial support for some parts of the reform programme.

2 STATECO, (2005), Méthodes statistiques et économiques pour le développement et la transition, No. 99. 3 Central Statistical Agency, (2006), The 2005 Labour Force Survey.

4 Ministry of Finance and Economic Development (MoFED), (2005), Ethiopia: Building on Progress: A Plan for Accelerated and Sustained Development to End Poverty (PASDEP) (2005/6-2009/10). 5 The Sustainable Development and Poverty Reduction Program (SDPRP) covered the years 2000/01-2003/04.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

1. Introduction: Ethiopia, a country waking up to the reality of the informal sector

opment strategy, and the inclusion of informal sector work-

ers in the vision of the country’s future.

The third phase of the Education Sector Development

Program

(ESDP-III),6

which follows on from a programme

initially launched by the Ethiopian Government in 1997,

gives an overview of the education system and explains in detail how training and education policies are contributing to the overall strategy for boosting growth and reducing

poverty.

Information on the current TVET reform may be found in a

number of reports, the most important of which is the

phases of its development. The reform’s implementation

framework, notably regarding the inclusion of non-formal

training in the future TVET system, is dealt with in a separate document which has been produced by the Education

Ministry with German technical assistance.8

All of these documents, which are constantly being updat-

ed, clearly show that the inclusion of vocational training in

the country’s development strategy, and notably efforts to recognise the informal sector’s role and skills needs, is at

the heart of the political agenda.

The only things missing from this comprehensive bibliogra-

National Technical and Vocational Education and Training

phy are a very detailed analysis of the informal sector/econ-

being completed during our survey. The document sets out

try’s growth and poverty-reduction policy.

(TVET)

Strategy.7

The latest version of this report was

and explains the reform’s key guidelines and the various

omy, and an objective picture of its contribution to the coun-

6 Ministry of Education, (2005), Education Sector Development Program (ESDP-III), 2005/2006-2010, Program Action Plan (PAP).

7 Ministry of Education (September 2006), National Technical and Vocational Education and Training (TVET) Strategy. 8 Engineering Capacity Building Program (ECPB, July 2006), Non-Formal TVET Implementation Framework, Building Ethiopia.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

Ethiopia’s informal sector is part of an economy that

remains heavily dependent on the primary sector, although

a noticeable shift towards services and production activities

is under way. It has also been fully included in the policy to

combat poverty and reduce illiteracy and under-education

rates among the population.

2.1. Growth is strong, but vulnerable to climatic and political conditions Since the Federal State was established in 1994, Ethiopia

has enjoyed a relatively sustained rate of growth, signifi-

cantly above that of Sub-Saharan Africa as a whole.

Economic growth then peaked at an unprecedented 13.1%

in 2004, mainly due to the quick recovery of agricultural pro-

duction. According to the OECD, the Ethiopian economy

However, this rate suddenly fell from 8.8% to 2.7% in 2002,

should continue to show good results following the 2004

due to the drought that afflicted the country in 2002/2003.

of 5.8% has been forecast for 2005/2006.

and there was negative growth in 2003 (-3.7%). This was

Table 1.

GDP growth: Ethiopia and Sub-Saharan Africa

CGDP (current prices, in billions of dollars), Ethiopia

GDP (current prices, in billions of dollars) Sub-Saharan Africa Annual GDP growth, Ethiopia (%)

Annual GDP growth, Sub-Saharan Africa (%)

GDP per capita (in constant 2000 dollars), Ethiopia

1990

1995

2000

2001

2002

2003

298.38

317.52

326.24

324.87

337.21

439.29

3.8

3.2

3.3

3.4

3.9

8.61 2.6

94.7

Gross National Income (GNI) per capita, Ethiopia

peak. Economic growth for 2004/2005 was 6.8% and a rate

170

5.78 6.1

90.2 110

6.53 6.0

101.5 110

6.51 8.8

108.0 110

6.06 2.7

108.6 100

6.65

2004

-3.7

102.4 90

13.1 4.8 ..

110

Source: World Bank (2005), World Development Indicators.

The Ethiopian economy is heavily driven by the agricultural

roads), low levels of productivity (due to the limited use of

80% of the population (89% in 2001 according to World

and environmental degradation)10 as well as chronic short-

sector, which represented 42.1% of GDP in

2004,9

employs

Bank figures) and provides around 90% of export revenue.

The estimated increase in agricultural production is 6.6% in 2004/2005, and 7.4% in 2005/2006 and 2006/2007.

Agriculture receives support from public aid programmes

such as the national food security programme, and benefits from the extension of public services to rural areas and the protection of farmers’ rights. However, given the constraints

affecting agricultural markets (partially due to the lack of

pesticides and fertilisers, irregular rainfall, poor soil fertility, ages of foodstuffs, the OECD estimates that approximately 5 million Ethiopians continue to depend on food aid.

Services represented 46.5% of GDP in 2004. This sector grew by approximately 7% between 2004 and 2005, chiefly

9 OECD (2006), African Economic Outlook 2005/2006 – Country Studies: Ethiopia.

10 World Food Programme (2006), Draft County Programme - Ethiopia 10430.0 (2007-2011).

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

as a result of the growth in the health and education sec-

tors, as well as in transport and communications.

Industry, which represented 11.4% of GDP in 2004, showed

ber of growth niches just waiting to be exploited. 2004 saw

the rapid emergence of a horticultural sector, which contin-

ued to show strong signs of growth in 2005.11

real growth of approximately 7% over the 2004/2005 peri-

Ethiopia’s balance of trade has a structural deficit. Exports

and business demand for construction services, and the

sixth largest producer), where the downward trend in prices

od. This was mainly generated by a high level of household

development of the mining and quarrying industries.

Growth in service activities and a genuinely modern indus-

are essentially generated by coffee (Ethiopia is the world’s

is likely to continue in view of the global surplus. Conversely, the increase in import prices, in particular of oil and steel, has worsened the country’s trade deficit, which

try appears to be constrained by the fact that Ethiopia has

reached 20.4% of GDP in 2003/2004. Ethiopia relies on

ficult to introduce effective privatisation policies.

budget deficit and also to finance part of its investment pro-

a predominantly public sector economy and is finding it dif-

The country has considerable unexploited resources

(hydroelectricity, minerals, tourism, etc.) There are a numTable 2.

GDP in 2004, by sector

Agriculture

As a % of Ethiopia’s GDP 42.1

Manufacturing industries

4.6

Other industries

6.8

Trade, hotels and restaurants

8.6

Transport, storage and communications Public services

Source: AfDB/OECD 2006.

gramme.

The present economic situation is however threatened by recent political developments. The violence that broke out as a result of the contested election results in May 2005,

and the ensuing brutal repression of the opposition, jeopar-

dised political stability and led to the freezing of part of the

international aid budget ($375 million in December 2005,

which is equivalent to 10% of the country’s revenue).12 The

7.0

growing risk of conflict with Eritrea should also be stressed;

16.2

two countries in recent years, despite the peace agreement

14.7

Other services

multilateral and bilateral international funding to cover its

there has been a constant increase in tension between the

signed in December 2000.

2.2. Persistent poverty Table 3.

Growth of GDP per capita

GDP per capita, in dollars

GDP per capita in Purchasing Power Parity (PPP)

2001

2002

120

109

723

727

2003

2004

115

137

691

2005 2006 (estimated) (anticipated)

769

153

823

170

858

Source: International Monetary Fund (IMF).

Apart from the 2002/2003 period when Ethiopia faced a

Despite the constant increase in Ethiopia’s HDI, a large

gradually and consistently increasing over recent years.

2000, 77.8% of Ethiopians lived on less than $2 a day, and

general economic slowdown, GDP per capita has been

However, in spite of this encouraging economic perform-

ance, Ethiopia remains one of the poorest countries in the world. It was ranked 170th out of 177 countries in the

UNDP’s Human Development Index (HDI) in 2005.13 © AFD Working paper No 34

section of the population continues to live in poverty. In 23% were living under the absolute poverty level ($1 a day).

11 Mission économique d’Addis-Abeba (2006), Fiche pays Ethiopie, MINEFI-DGTPE. 12 OECD, op. cit.

13 UNDP, (2005), Human Development Report.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

Studies carried out under the PASDEP show that average

Under the PASDEP’s current phase (2006-2011), it should

to reduce the level of absolute poverty. At this rate of

increased productivity growth in agriculture, improved man-

poverty in 2015. An annual growth of at least 8% would be

tion of the means of subsistence.15

growth of 4% over the coming years would not be enough growth, more than 20 million Ethiopians will still be living in

needed to achieve the Millennium Goals to cut current

be possible to improve the current situation thanks to

agement of natural resources, food security and diversifica-

poverty levels by half.

Ethiopia also benefits from the Heavily Indebted Poor

Ethiopia is thus one of Africa’s chief recipients of World

April 2004, thus opening the way for cancellation of multi-

Bank and EU development aid. In 2004, Ethiopia received

aid worth a total of $1.2 billion, which is approximately equivalent to 16% of its GDP14.

Countries (HIPC) Initiative. It completed the process on 20

lateral debt. This has permitted rescheduling which has resulted in a reduction of nearly 80% of Ethiopia’s foreign

debt.16

2.3. Major educational needs According to data from the National Population Office (2005),

investment is thus needed in the education system.

In view of this situation, the Ethiopian government adopted

Ethiopia has a population of 73 million. The country has had

an education and training policy, from 1994 onwards. With

last decade, which has now settled at 1.9% (World Bank,

Development Programme (ESDP). The country is currently

an annual demographic growth rate of nearly 2.5% over the

2006). This means that Ethiopia has a young population

(45.4% of the population—in other words about 31.2 million people—was aged under 14 in 2003), and that considerable Table 4.

Literacy rates, Ethiopia compared with Sub-Saharan Africa

UNESCO’s help, it drew up a ten-year Education Sector in the third phase of this programme (ESDP III), which runs

from 2005 to 2011. The main aim of the programme is to achieve the Millennium Goals through improved access to

Ethiopia

Sub-Saharan Africa

Female literacy rate (% of women aged 15 and over) (2000-2004)

40.3

54.8

Youth literacy rate (% of 15- to 24-year olds) (2001)

67.5

Literacy rate (% of people aged 15 and over) (2000-2004)

49.9

Male literacy rate (% of men aged 15 and over) (2000-2004)

Literacy rate of young women (% of 15- to 24-year old young women) (2001)

60.2

Literacy rate of young men (% of 15- to 24-year old young men) (2001)

74.8

62.5

70.9 70.5

65.7

75.7

Source: UNESCO, Institute of Statistics.

education and better quality teaching.

15 and 24 is clearly on the increase, and that the disparities

There are considerable challenges to be met in terms of lit-

between Ethiopia and the other countries of Sub-Saharan

were among the highest in the world until the mid-1970s.

Ethiopia, are gradually being reduced thanks to the efforts

rates remain 12.6 points lower than the average for Sub-

14 Mission économique d’Addis-Abeba, Fiche pays Ethiopie, MINEFI-DGTPE.

eracy. According to UNDP data, Ethiopia’s illiteracy rates UNESCO data for 2000-200417 shows that adult literacy

Saharan Africa, and that there is a gap of nearly 20 points

between male and female literacy rates. They also show however that literacy among young people aged between

Africa, and between young men and young women in

15 World Food Programme (2006), op.cit. 16 Mission économique, op. cit.

17 UNESCO’s data are more encouraging than those in the PASDEP (Plan for Accelerated and Sustained Development to End Poverty), which indicates that in 2004, 62% of Ethiopians were illiterate.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

the country is making in order to develop its education sec-

tor. However, there are still significant disparities between rural and urban areas, and these also need to be reduced.

UNESCO’s analysis of the net enrolment ratio18 shows that, Table 5.

despite progress made in the area of literacy, education lev-

els in Ethiopia remain below those for Sub-Saharan Africa.

This net enrolment ratio is low for primary education com-

pared to other countries, remaining at under 50% of children of school age. The repetition rate in primary education is rel-

Progression and achievements in the education system (2004)

Ethiopia

Average number of years’ education ISCED 1-6 years Repetition rate, primary education (%)

6 (UIS estimate)

Survival rate into the grade for 10- to 11-year-olds (%) (2000-2004)

Rate of transition from primary to secondary education (%)

Source: UNESCO, Institute of Statistics.

atively low (11%) and the survival rate is 62% of children.19

at the same level as the average for Sub-Saharan Africa.

around 25% of the age range concerned. This puts Ethiopia

transition rate from primary to secondary education; this

However, in secondary education the net enrolment ratio is

Table 6.

One of the reasons for this situation is the relatively high

Primary and secondary school net enrolment ratios (2004)

Net enrolment ratio, primary school (%)

Ethiopia

Sub-Saharan Africa

Net enrolment ratio of girls, primary school (%)

Net enrolment ratio of boys, primary school (%)

Net enrolment ratio, secondary school (UIS estimate,22%)

Net enrolment ratio of girls, secondary school (UIS estimate, %)

Net enrolment ratio of boys, secondary school (UIS estimate, %)

65 67

Source: UNESCO, Institute of Statistics.

was 85% in 2004.

The data provided by the PASDEP reinforce those provid-

ed by UNESCO.23 They show a gross enrolment ratio24 of

79.2% in 2004/05 (70.9% for girls and 87.3% for boys).

They also highlight extremely wide inter-regional dispari-

ties, with a rate of 125% for Addis Ababa compared with a

rate of 75 to 80% for the regions of Amhara and Dire Dawa,

programmes to bring it down to 50.

Although Ethiopia spends an average of 4.6% of its GDP on

18 The net enrolment ratio is the percentage of enrolled children of the official age for the education level indicated to the total population of that age. Net enrolment ratios exceeding 100% reflect discrepancies between these two data sets (UNDP, (2003), Human Development Report).

and only 15 to 17% for the regions of Afar and Somalia.

19 According to 2006 World Bank data, the survival rate is only 51%, which would considerably weaken the efficiency of the Ethiopian education system.

ESDP was launched) and the current phase of ESDP III,

21 UNICEF.

Lastly, they show that between 1997 (the year the first

the number of primary schools in Ethiopia rose from 10,394 to 16,078. This increase has however been coupled with a

rise in the teacher/pupil ratio. This stood at 57 in 1997 and has risen to 69 in 2005 (compared to an average of 44 in Sub-Saharan Africa), despite the aims of the successive © AFD Working paper No 34

20 International Standard Classification of Education. 22 UNESCO Institute for Statistics.

23 Ministry of Finance and Economic Development (MoFED) (2005), Ethiopia: Building on Progress: A Plan for Accelerated and Sustained Development to End Poverty (PASDEP) (2005/6-2009/10). 24 The gross enrolment ratio is the percentage of total number of children enrolled in primary education, irrespective of age, and the population of the age group of those officially eligible for primary education in any given year. This indicator is widely used to assess the overall level of participation in primary education and the capacity of the education system to satisfy primary education needs (UNESCO).

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

education, a figure that puts the country in the higher brack-

the lack of teachers is the main factor hindering the

et in terms of education spending across the region, con-

increase in primary education enrolment. This is why there

teachers is appallingly low in relation to the number of chil-

a view to educating a maximum number of children and

siderable efforts are still needed. However, the number of dren of school age. According to the Ministry of Education,

are plans, under ESDP III, to recruit 294,760 teachers with reducing the teacher/pupil ratio to acceptable levels.

2.4. An essentially rural and informal labour force The Labour Force Survey (LFS), carried out in 2005 by the CSA,25

indicates a participation rate of the economically

active population (including all those over 10 years old) of

76.7% over the twelve months preceding the survey. However, this figure varies widely according to gender and areas of activity. For example, the participation rate is only

it is high in urban areas (13.7%). Female unemployment is

very high in urban areas (27.2%), but low in rural areas (4.6%).

2.4.1. A strong contrast between rural and urban activities

50.2% in urban areas, whereas it reaches 82% in rural

Analysis of the economically active population by cate-

women. Similar differences can be seen as far as unem-

tors, in particular agriculture/fishing and services, as well as

areas. The rate for men is 84.7% compared to 69% for ployment is

concerned.26

The rate of unemployment is

20.6% in cities, but only 2.6% in rural areas. There is barely any male unemployment in rural areas (0.9%), although

Table 7.

gories of employment highlights differences between secbetween the kinds of jobs held by those working in these

sectors. These include skilled workers, workers doing elementary jobs (mainly in manufacturing), craftworkers and

Breakdown of the economically active population by categories of workers

Categories of workers

Those working in services or trade

Participation rate in urban areas

Participation rate in rural areas

40.5

8.2

44.5

22.6

5.1

6.7

Qualified workers in agriculture and fishing

Elementary jobs27

42.8

Crafts and related activities

7.0

Technicians and similar

workers Others

Overall participation rate

1.0

Source: National Labour Force Survey, 2005.

2.0

technicians.

24.8

24.6

5.5

14.3

4.5

45.1

0.4

poverty level currently live in rural areas)28 will have a sig-

The breakdown by categories of activity/types of jobs con-

nificant impact on the type of work done by the economi-

on the rural and agricultural sector (which employs more

ties are also likely to grow.

population of 35 million). It also indicates that non-agricul-

25 Central Statistical Agency of Ethiopia (2006), The 2005 National Labour Force Survey.

firms the fact that Ethiopia’s economy is heavily dependent than 25 million people out of a total economically active

tural service and production activities are mainly concentrated in urban areas. From this we can infer that the grow-

ing urbanisation of Ethiopia, which currently has one of the

highest rural population rates in the whole of Africa (85% of

total population and 90% of the population living under the © AFD Working paper No 34

cally active population. Service, crafts and technical activi-

26 According to the person in charge of the LFS, the concept of unemployment used in Ethiopia is that of flexible unemployment. This defines the unemployed as those who are available for work whereas the strict definition used by the ILO is unemployed people available for work and looking for work. 27 The survey defines elementary activities as those carried out by day labourers in agriculture, mining or building.

28 ECPB (2006), National Technical and Vocational Education and Training (TVET) Strategy.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

According to the survey, the distinction between skilled and

elementary activities does not appear to correspond to the usual skills levels. It rather suggests that skilled workers in

economy by analogy, in other words by applying the Agency’s indicators for urban areas to the rural sector.

agriculture and fishing have a fixed professional activity,

A labour market dominated by domestic jobs and self-

are day labourers who change jobs depending on the work

The Labour Force Survey gives a detailed analysis of

whereas workers classed in the elementary jobs category

available mainly in manufacturing. According to the survey

on the informal urban sector published in 2003,29 the term

“elementary job” refers to routine tasks that are usually of a

employment

employment status in Ethiopia, indicating in particular that

the majority of the economically active population is either

unpaid family workers (50.3%) or self-employees/own

manual nature and require physical effort. Examples given

account workers (40.9%). Although the available data does

various kinds of washing and cleaning activities, cleaning

is no doubt that most of the activities covered here are infor-

etc.

ment (according to the term “day labourer” used to define

in the survey include street, market or door-to-door sales, and maintenance in houses, hotels and offices, portering,

not enable any precise classification of these workers, there

mal, in that they are above all based on occasional employelementary activities), family, personal or social links

2.4.2. Difficulties in appraising the informal sector as a whole

The statistical data available (LFS 2005 and Informal Sector

Survey 2003) provide a detailed overview of Ethiopia’s labour market, given that the two surveys furnish significant data on the breakdown of the workforce and the respective

shares of types of activity according to a large number of cri-

(unpaid family workers) rather than jobs covered by a prop-

er employment agreement including guarantees.30 The

table on the breakdown of the economically active popula-

tion according to employment status shows that at most

8.8% have salaried employee status and thus the possibili-

ty of a formal employment contract.

On the basis of these data, it is impossible to say that all

teria. A major problem still remains, however, concerning the

jobs outside public administration and private enterprises

concept used by the CSA only applies to urban areas, and it

grounds for presuming this to be the case. The results of

identification of those working in the informal sector. The

is only possible to gain an overall view of the non-structured Table 8.

are in the informal economy, although there are strong

the 2003 Informal Sector Survey31 make it easier to give an

Breakdown of the economically active population according to type of employment

Employee status

As a % of overall participation/activity rate

As a % of urban participation/activity rate

As a % of rural participation/activity rate

Self-employees/own account workers

40.9

40.3

41.0

Private organisation

2.9

15.1

Government employees

2.6

Unpaid family workers

50.3

Others

Source: National Labour Force Survey, 2005.

3.3

accurate interpretation of the 2005 survey on the real situ-

ation in the overall labour market.

16.5 15.0

13.1

0.9

54.6 1.4

3.5

a specific context (urban areas only). It also uses multiple

criteria that are much wider than simply a business with no

Those working in the informal sector do so by necessity,

are left to themselves, and are mainly self-taught

In its introduction to the Informal Sector Survey, the Statistical Agency defines the informal sector as existing in © AFD Working paper No 34

29 Central Statistical Agency (2003), Report on Urban Informal Sector, Sample Survey.

30 See the definition of informal employment in R. Walther, (2006), La formation en secteur informel, Note de problématique, AFD Working Paper No.15. 31 Central Statistical Agency (2003), Op.cit.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

specific accounting system: the definition used in the sur-

cases. Although the survey states that co-operatives

veys identified in the other countries visited. The basic def-

and associations are on the increase, these presently

inition used is that the informal sector refers to activities

which are carried out in the home or in a single-person

enterprise by the owner alone or by the owner and a very small number of employees. The wider definition includes

represent only a very small percentage of informal

the informal enterprise is not usually officially registered and has a low level of organisation, productivity, and profitability;

it has limited access to the market, to credit agencies, to

it has very small or no fixed premises, and is usually

it is not recognised, supported or regulated by the pub-

formal training and to public services;

located in the family’s home;

lic authorities and does not comply with social protection regulations, employment legislation or health and

safety provisions.

the capital of informal enterprises is made up of 90%

personal or family capital. 0.12% have obtained a bank

loan, 0.74% have received funding from micro-credit

the following criteria:

enterprises;

organisations, and 1.04% receive support/funding from

public authorities and/or NGOs;

63% of the value-added of the sector is generated by

trade and hotel and catering, and 25% by manufacturing. Next by order of importance are personal services,

urban agriculture, and transport;

people choose to work in the informal sector mainly

because they have no other alternative (41.73%) and/or because little investment is required (36.73%). For only

4.54% is it a deliberate choice;

workers in this sector acquire their skills through being

self-taught (67.86%), via their family (26.88%) or

through apprenticeship or on-the-job training (3.54%).

Results of the 2003 survey on the informal sector are the

Only a very small percentage (0.09%) has received any

following:

formal training.

informal enterprises employ 50.6% of the urban eco-

out of the 799,352 people interviewed as part of the sur-

46.95% are literate (compared with the national average of

trade or hotel and catering sectors;

primary education (compared with 46% at national level)

nomically active population;

vey, 43.29% work in manufacturing and 37.78% in the

99.09% of enterprises have a single owner. Ownership

is based on a structured partnership in only 0.56% of

Table 9.

An analysis of informal sector workers’ education levels and

the different methods of skills acquisition shows that only 49.9% for the same period), that 42.74% have completed

and that only 13.01% of male workers have been through

secondary education, compared with 31% at national level.

Analysis of the level of education of informal sector workers by gender (in %)

Total workforce and share by gender

Illiterate

Men

32.50

Total

53.05

Women

67.41

Source: Survey of the urban informal sector, 2003.

These figures show that the informal sector employs the least educated men, and especially women, and that workers with a higher level of education are more likely to be

able to find alternative employment to the informal sector. © AFD Working paper No 34

Intermittent school

Years 1-6

Years 7-8

Years 9-12

Over 12

1.57

35.28

7.46

6.98

0.13

5.03 2.99

16.45 24.19

13.48 9.46

13.01

0.71

9.46

0. 37

Total illiterate 67.50

32.59

46.95

They also show that only a very tiny number of workers

have taken part in TVET. It can be said therefore that, in

2003, TVET had almost no effect on the skills existing in the informal sector.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

2. The country’s economic and social challenges

A dominant and fast-growing informal sector

also underlines that the creation and consolidation of

rural areas, it can be said that all of the jobs recorded in

private companies, or from public administration, but nec-

If the “informal unit” term used for urban areas is applied to

2005 under the headings of self-employment, own-account

workers and unpaid family workers do, by analogy, come

under the informal sector. The percentage of informal work-

employment in Ethiopia cannot come from major public or essarily relies on the development of MSEs, especially in

the informal sector, and the promotion of viable forms of

self-employment. The statistical study on the informal sec-

ers out of the total economically active population is thus

tor also indicates that the informal economy is growing

and Senegal as countries with a huge informal-type econo-

recession, structural adjustment policies, increasing urban-

91.2%. This places Ethiopia alongside Cameroon, Benin

my employing at least 90% of the economically active pop-

ulation. This analysis is confirmed by the non-formal TVET

rather than declining. According to the study, the economic

isation and high population growth have led to the unantic-

ipated and unprecedented growth of the informal sector in

implementation framework programme drawn up by

a number of developing countries. This is all the more so as

the Ethiopian authorities and training providers concerned.

had to make workers redundant or make large cuts in

German development aid agencies in co-operation with all

It clearly indicates that the vast majority of employment opportunities lie in the informal sector.32 The programme

modern enterprises and especially public companies have

salaries. This partly explains the importance of the informal

sector in Ethiopia.

32 ECBP (Engineering Capacity Building Program) (2006), Non-formal TVET implementation framework, Building Ethiopia.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

3. Vocational training reform geared to the economic and social challenges

The TVET system is currently the focus of an in-depth strate-

The purpose of the overall programme is to reform voca-

economy with the skills it needs in order to grow. This rethink-

to introduce a national framework for qualifications and

gic rethinking and a reform intended to provide the Ethiopian ing and reform process is part and parcel of an overarching

policy entitled “Building Ethiopia”, which is being implement-

ed by the Ethiopian Government under the supervision of the

tional training and engineering courses. It is also designed standards, to develop the private sector and to encourage it to contribute to the various types of action being taken.

The reform of the TVET system is a key component in the

Ministry of Capacity Building and in partnership with the

programme. This reform, which is just getting under way, is

the private sector. The Engineering Capacity Building

Education with technical assistance from German aid agen-

Ministry of Education, the Ministry of Trade and Industry and

Program

(ECBP)33

is responsible for the policy’s overall

implementation. It is funded by the German Ministry of

Economic Co-operation and Development (BMZ), and oper-

ates with assistance from various German aid agencies

being implemented as part of the ECBP by the Ministry of cies, in conjunction with local and regional authorities and

with the co-operation of all the economic and social part-

ners concerned.

under the co-ordination of the largest such agency, the GTZ.

3.1. Current state of TVET According to the Ethiopian Ministry, technical and vocation-

al education and training comprises three main types of training:

formal training schemes run by accredited public or pri-

vate vocational training centres and leading to recog-

informal training, which refers to the acquisition of

knowledge and skills in a non-structured environment. It consists primarily of on-the-job training that is not currently recognised or validated and traditional appren-

ticeships in MSEs, particularly in the craft sector.

nised technician-level certification;

“non-formal” training courses,34 which do not meet recognised standards relating to content and the necessary length of training in order to obtain certification.

They are delivered by public or private institutions such

as NGOs, community training centres, religious agen-

cies and private profit-making bodies. Non-formal train-

ing focuses primarily on helping people obtain employ-

ment. It is aimed at school leavers, school dropouts, young and adult workers and groups excluded from the labour market;

33 As the term ECBP is commonly used in Ethiopia, it seems logical for this report to refer to the Ethiopian capacity building programme in this way.

34 The definition of non-formal training given in the reference documents is taken from CEDEFOP’s 2003 Glossary on Transparency and Validation of Non-Formal and Informal Training. It defines non-formal training as “learning which is embedded in planned activities that are not explicitly designated as learning (in terms of objectives, time or support), but which contain an important learning element. Non-formal learning is intentional from the learner’s perspective.” The strategic and operational papers mentioned define the concept of informal training along the same lines as CEDEFOP (learning resulting from everyday activities related to work, family or leisure, which in most cases is unintentional from the learner’s perspective), while incorporating it into the overarching concept of non-formal training.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

3. Vocational training reform geared to the economic and social challenges

Training is also available in the agricultural sector, but the

Ministry of Education is not responsible for it.

The following table outlines the structure of the formal

TVET system organised by the Ministry of Education.

In order to increase the availability of training for young

excluded people and school dropouts, over ten years ago,

the Government decided to expand the formal TVET sysTable 10.

Age

tem. Thus the number of non-agricultural education and training institutions rose from 17 to 199 between 1996/1997

and 2004/2005, and the number of pupils from 3,000 to 106,300,35 31% of whom are trained in private establishments. In addition, approximately 42,000 young people

were enrolled in agricultural courses in 2004/2005.

However, notwithstanding the efforts made to extend TVET in recent years, it caters for just 3% of the relevant age

group.

The Education and TVET system in Ethiopia

Grade

Higher Education

Diploma Level

Upper Secondary School

Certificate Level II Certificate Level I

General Secondary Education

Junior Level TVET

Primary Education

Basic Level Vocational

Source: Ethio-German TVET Programme (2003), The Ethiopian TVET Qualification System, Addis Ababa.

Despite these investments, and although it is difficult to esti-

mate the number of Ethiopians with access to TVET, demand still far exceeds supply and most of the population

does not have access to such training—particularly school

dropouts, the unemployed, company employees, the self-

vocational skills outside the formal TVET system (through

traditional apprenticeships, non-formal training, exercising

an occupation and so on) to obtain recognised certification,

resulting inter alia in a lack of labour market transparency.

employed and workers employed in MSEs. In addition, the

system has a number of obvious weaknesses. In recent years, for instance, many employers have lamented the

poor quality of teaching, trainees’ lack of practical skills and

the unsuitability of training programmes. Moreover, it has

not been possible until now for people having acquired © AFD Working paper No 34

35 According to ESDP (Education Sector Development Programme) III. The first ESDP programme (ESDP I) was launched in 1997 as an integral part of the Civil Service Reform Programme (CSRP). In fact, the purpose of the ESDP is to help the Ethiopian Government harness the full range of national and international resources in order to enhance the quality and efficiency of the education system as a whole, and to report on the efforts made in this area.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

3. Vocational training reform geared to the economic and social challenges

3.2. Towards a reform focusing on those concerned in the informal economy The strategic thrust of the reform was defined as part of the

of the training system. This means that the new system

implementation of the PASDEP and in the context of the var-

must explicitly define the objectives and content of such

plans. The public authorities responsible for overseeing it

the relevant partners must be involved in the planning,

ious national and sector-specific economic development

training and specify operational procedures, and that all

with technical assistance from German aid agencies have

management and assessment phases when it comes to

force. The aim is to develop the private sector and introduce

that the existing distinction between formal training lead-

the task of training a skilled, motivated and competent work

education and training schemes geared to demand and tai-

developing non-formal training provision. It also means

ing to specific qualifications and non-formal training lead-

lored to the economic and social needs of the labour market,

ing to unvalidated, unrecognised competencies and skills

nities. The current reform thus directly focuses on upgrading

the entire training system be based on occupational stan-

particularly with a view to creating self-employment opportuthe skills of those employed in the informal economy.

3.2.1. The main thrust of the reform The main thrust of the reform may be described as follows:

dards as well as a single format for accrediting all different

types of courses. It also proposes that training be assessed and certified on the basis of outcomes, that is,

the competencies actually acquired as a result of formal or

informal training and validated using a uniform certifica-

broadly, it seeks to change the vocational training para-

tion method and system.

driven by demand and, more importantly, by the accred-

Figure 1 shows how the reform makes the transition from

digm by moving from a supply-driven approach to one

itation of existing skills, irrespective of how they have

supply-driven training to demand-led training, notably tak-

by turning the system around, it will improve access to

reflected in, and organised into occupational standards

people and adults who have dropped out of school,

various modes of formal, non-formal, workplace, on-the-job

been acquired;

training among people who are usually excluded (young

have a low level of education or are illiterate, entrepre-

neurs and workers in the formal and informal economy

who need to upgrade their skills and obtain recognised

qualifications, farmers and agricultural workers, unemployed people seeking skills in order to enter the labour

must be abandoned. To this end, the reform proposes that

market, and so on);

it is designed to gear training to MSEs, to encourage

training centres to concentrate on the informal econo-

myâ&#x20AC;&#x2122;s skills needs, to introduce incentives aimed at

ing account of labour market needs. These needs are serving as a basis for the design of training curricula and

training and self-learning. If the system is to be successful,

a quality-management approach should be adopted during

the labour market analysis to ensure this is used effective-

ly to draw up occupational standards, and to incorporate

various forms of training into a service geared to the skills development needs of individuals and businesses. `

According to the strategic and operational reference docu-

ments, delivery of the reform clearly calls for an overhaul of

encouraging business start-ups at local level and in par-

all existing training schemes so as to tailor them to the com-

credit so as to create self-employment opportunities,

the micro- and small enterprise sector. These schemes also

develop training courses tailored to the needs of their

achieved. In particular, all private and public, economic and

ticular linking the acquisition of skills to access to micro-

and, lastly, to enable the various training institutions to target groups.

At a more structural level, the current reform is intended to

ensure that non-formal training becomes an integral part ÂŠ AFD Working paper No 34

petencies and skills needed by the market, particularly in

require institutional changes in line with the objectives to be

social, and national and local partners must be involved

both in developing new training content and modes of training and in managing the overall training, assessment and certification system.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

3. Vocational training reform geared to the economic and social challenges

Figure 1. Outcome-based organisation of TVET system

Labour Markett

Quality Management

Occupational Testing/ Certification

Occupational Standards

regulated by TVET authorities (with participation of stakeholders)

Support to curriculum development: curriculum guides, model curricula, etc

Helping Hand

TVET Delivery

Formal TVET delivered by public and non-public providers, enterprises, as cooperative training, etc.

Long and short term non-formal TVET programmes delivered by public and non-public providers, in enterprises, etc.

Informal TVET, i.e. on the job-training, self-learning, traditional apprenticeship and all other modes of TVET

Source: Ministry of Education diagram, Draft Revised Strategy, 2006.

3.2.2. The reform implementation process

Various strategic papers published since 2002 have gradu-

what needs to be done in order for Ethiopia to ensure a more competent and skilled work force, thereby improving

ally refined the reform process to be implemented, and out-

its chances of development and economic growth. Previous

developed. Various initial tangible outcomes were identified

Training in the Informal Sector”, particularly the one on

lined the main thrust of an operational scenario now being during the field survey.

The decision to adopt a uniform approach to the reform

Various ministries are currently involved in Ethiopia’s TVET

sector on account of the institutions they are in charge of:

field surveys carried out as part of the study on “Vocational

Benin, showed that without such a common vision none of the reforms instituted had any chance of being completed

within a reasonable timeframe. The field survey demonstrated that such a common vision exists in Ethiopia as regards the broad thrust of reform, but not necessarily in

the Ministry of Education, the Ministry of Agriculture, the

relation to the specific means of delivery.

the Ministry of Labour. The paper setting out the “National

The issue of consultative or deliberative management of

Strategy”,36 the latest version of which has recently been

The strategy paper calls for a wide range of stakeholders at

of covering all forms of technical and vocational training,

ponents and phases of the reform process.

Ministry of Health, the Ministry of Trade and Industry and

Technical

and

Vocational

Education

and

Training

completed (in September 2006), has the distinctive feature

apart from higher education, irrespective of which particular

the reform process

all levels to be involved in implementing the different com-

ministry they come under. The application of this acrossthe-board strategy to all forms of training is innovative in

that it unites all the partners around a common vision of © AFD Working paper No 34

36 ECBP (2006), op.cit.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

3. Vocational training reform geared to the economic and social challenges

The public authorities have opted for the greatest possible

representation of stakeholders. The partners normally

involved in consultation forums in other countries (ministries, employers, trade unions and sector bodies) are

included, but so are representatives of teachers, parents, local authorities, the beneficiaries and leading national

how they are gained (through training or the validation

of competencies acquired on the job).37

The reform project sets out procedures for implementing

each of these phases. For instance, the task of analysing

demand is described as being the joint responsibility of

communication agencies. As a result, some of the organi-

training centres and employers. The federal authorities are

organisations and trade unions, feel that their voices cannot

employers and trade unions must also be consulted and

sations met with during the survey, particularly employers’

be heard properly. The key consultation forums identified in

responsible for setting occupational benchmarks, although

actively involved, and contributions must be sought from

the strategic paper are the national and regional commit-

experts who are knowledgeable about the world of work.

reform according to the main guidelines set. A number of

ing centres, whose sole obligation is to produce modular

tees responsible for helping the authorities introduce the

Curriculum development is assigned to experts within train-

those met mentioned the current debate over the proper

courses leading to the outcomes identified by the corre-

mere forums for expression and information sharing, or will

ried out on an independent basis at the Centres of

nature of these committees: will they continue to serve as they, as many seem to hope, be given genuine decision-

sponding benchmarks.38 Assessment and certification, carCompetence still to be set up, undoubtedly form the cen-

making authority? It appears that employers, who have

trepiece of the entire reform. By assessing competencies

committees, will play an active role in them only if their func-

the system as a whole can focus on the new target groups:

trouble finding the time and motivation to take part in these tion is deliberative rather than purely consultative.

rather than the knowledge acquired during training courses, as well as graduates of formal and non-formal training

schemes, these include apprentices, workers trained on the

The crucial need for a uniform approach to reorganising

job and, by extension, those employed in the informal sec-

The fact that the reform focuses on outcomes (i.e. the com-

than proven occupational know-how.

demand, supply and certification

petencies acquired and certified) has led to a complete

overhaul of the training system by means of a process

tor, many of whom have no educational qualifications other

The field survey was able to verify that the reform imple-

divided into interlinked phases in terms of both methodolo-

mentation scenario was not merely hypothetical, but had

lows:

tion sector, which is regarded as a priority. Some bench-

gy and timeframe. This process may be described as fol-

ishing work and interior fittings have been finalised.39 While

standardised at national level;

are at least in the process of being completed. The experts

culminates in the setting of occupational benchmarks

these benchmarks, which identify the competencies to be developed, serve as standards for the development

ious training mechanisms (formal, non-formal and infor-

marks for occupations in areas such as structural work, fin-

analysis of the labour market and business demands

of training curricula and quality management of the var-

actually begun to take shape, particularly in the construc-

mal) introduced;

both training outcomes and competencies acquired on

the job are assessed and certified in relation to the standardised occupational benchmarks;

assessment and certification give access to recognised

national qualifications, which are identical regardless of

the curricula for these benchmarks are not yet finished, they

37 The “Engineering Capacity Building Program, National Training Qualification Framework” paper gives a very clear picture of the overall qualification framework on which the current reform is based. As well as outlining the process of moving from labour-market analysis to certification by means of occupational benchmarks and assessment of the competencies acquired, it explains the different qualification levels: basic level, junior level, intermediate levels I and II (leading to certificates) and intermediate level (leading to a diploma). It shows that the qualification framework does not go beyond the recognition of technicianlevel diplomas, to use the terminology employed by the European Union. 38 Although training centres are responsible for curriculum development, they receive initial assistance from the Ministry of Education. It sends them “model curricula” developed at the central level, which they can adopt and/or adapt according to their own situation and needs. 39 According to the PASDEP, more than 50 occupational benchmarks had been set by the end of 2005.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

3. Vocational training reform geared to the economic and social challenges

responsible for testing and certifying them have received

methodological training. All that remains is to set up the

relationship between employer and trainee, and the young

person continues to be regarded as a school pupil through-

Centres of Competence at Entoto College in Addis Ababa.

out his or her time in the firm. Moreover, colleges have real

methodologically speaking everything is in place. The cen-

ships matching the technological and vocational content

The centre’s development plan has been finalised, and

difficulty placing young people in firms and/or finding intern-

tre is not yet operational however, and some of the people

covered by the school syllabus.

total, five or six Centres of Competence are to be set up

The reform of the TVET system includes the design and

we talked to expressed their impatience in this respect. In throughout the country.

The difficulty of developing dual-type training and/or

implementation of co-operative training courses.40 In prac-

tice, the initial aim is to introduce a pilot dual training

scheme in partnership with major Ethiopian public and pri-

apprenticeships

vate enterprises. The enterprises participating in the project

known as “apprenticeship”. It involves young people in

need. However, the plan is also for these enterprises to

The TVET system currently includes a form of training

grades 10+1, 10+2 and 10+3, that is, young people taking

formal technical and vocational courses. It operates as fol-

lows:

young people spend 70% of the school year, or 9

for the remaining 30% of the year, they are placed in

months, being trained at the centre;

firms. The firms are usually identified and selected by

will select the young trainees according to the skills they

take partial responsibility for training young people who

may be hired by enterprises not involved in the pilot phase

or who start their own businesses. The TVET centres par-

ticipating in the scheme will have to bring both their teaching quality and technological investment into line with the needs of enterprises.

The project currently being launched provides for the subse-

the training centre or college within its immediate eco-

quent extension of the pilot scheme to MSEs and, in particu-

um-sized enterprises forming part of the local economic

operatives and training centres in rural areas. The document

nomic environment. They are generally small or medifabric.

lar, production and service units in the informal sector and cosays that this second phase is particularly important because

of the predominance of MSEs in the Ethiopian economy, the

In educational terms, work placements count for 22% of the

current reform’s key requirement to open the TVET system to

spoke to told us that such placements are simply a form of

significantly increasing the number of people trained in the

overall assessment for the year. A number of those we

a wide range of target groups, and the Government’s goal of

work experience. According to the head of the Education

vocational education and training system.

ness executives to become genuine apprenticeship mas-

It is unlikely that successful co-operative training in large,

Office in Addis Ababa, there are institutions that train busiters and thus to supervise young people on internships.

Some of those institutions (including the college we visited

modern enterprises can be extended to the informal sector

as it stands. At present, the reform plan does not provide for

in Dire Dawa) have stopped offering this type of training.

a significant investment in training for adult workers in

The field survey found that this type of apprenticeship

es to become “apprenticeship masters”, albeit only for

raised a number of problems in practice. Firstly, this is an inappropriate description in that it refers to the experience

of working in a firm rather than a form of training alternating

between theory and practice: in this sense, the word “internship” would be far more appropriate than “apprenticeship”.

Secondly, no reference is made to any kind of contractual © AFD Working paper No 34

MSEs, let alone in training for the heads of such enterpris-

those young people under their responsibility within the traditional apprenticeship system. A comparison with the other

countries surveyed shows that such investment is the only way to motivate professionals to take on young trainees 40 ECBP (August 2006), Co-operative Training and Enterprise Training.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

3. Vocational training reform geared to the economic and social challenges

and involve them in an effective learning process. Training

craftworkers in Benin put it—a sense of fear among adults

young people without giving adults already in work (many of

vis-à-vis the growing influence of young people with greater

skills and thus to develop their careers engenders—as

ment of on-the-job training.

whom are under-educated) the means to upgrade their own

skills, which can but be detrimental to the smooth develop-

Figure 2. The phases of the reforms process

Source: Richard Walther.

3.2.3. The challenges of reform: moving from an

credit), networks of businesswomen, local, regional and

All the strategic and operational papers setting out and

chambers of commerce and so on. A 2003 Ministry of Trade

institutional to a grassroots approach

organising the different phases and key points in the reform process promise that the system will be opened up to those

currently excluded from it, and that efforts will be made to

involve its future beneficiaries. While target groups in the

national agencies for MSEs, sectoral associations linked to and Industry directive41 lists several dozen sectoral associations, many of which are active in the informal sector. The directive has the distinctive feature, however, of attempting

to organise and regulate—at the local, regional and nation-

informal sector are seen for their true worth, with an accu-

al level and in conjunction with chambers of commerce—

potential individual beneficiaries rather than possible asso-

workers at the grassroots level.

rate assessment of their situation, they are regarded as ciations set up to deal with economic, occupational or

organisations that exist first and foremost to represent

industrial processes.

In the light of a comparative analysis of training policies and

The various field surveys show that the institutional mind-

veyed, it appears that the current TVET reform will be more

set of vocational training practitioners when it comes to

approaching people working in the informal sector is unlike-

ly to motivate the latter unless representative associations

are involved, be these territorial, vocational or sectoral or

practices in the informal sector in the various countries sureffective and relevant if it is not confined to an excessively

institutional approach, but brings on board all the collectives

and associations represented in the non-structured economy. This means that the reform’s proponents must pay

simply NGOs. The field survey in Ethiopia was unable to

greater attention to the processes already at work in the

workers. However, steps are already being taken to form

enable the sector’s many workers to upgrade their skills.

cases, particularly as a prerequisite for obtaining micro-

41 A Directive Issued to implement Proclamation No. 341/2002 of Chamber of Commerce and Sectoral Associations Council.

identify any highly structured organisations of informal

groupings of stakeholders (which are mandatory in some

informal sector and use them to underpin their efforts to

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

Although it was easy to obtain all available information on

The field survey did, however, identify a number of

outlines of current TVET reform, it was difficult to find out

sible to obtain full information or meet the people best

training provided in formal establishments and on the broad

about training in the informal economy. There are several reasons for this: the information was scattered; few people

work in this area; there is little communication among the

various public and private agencies involved, and, although

schemes and operators in the field. It was not always posplaced to report on what has been done, but the information

gathered provides the broad outlines of current training ini-

tiatives in the sector.

the matter is considered important, it is not a priority.

4.1. The reality of traditional apprenticeship – a difficult issue The Non-Formal TVET Implementation paper published

to make a rapid appraisal of the training scheme for which

recently as part of the Capacity Building Programme men-

it is responsible. The major features are as follows:

According to this document, this sector includes employers

tions traditional apprenticeship in the MSE sector.

or very often master craftsmen owning small enterprises in

go through the TVET system and that only 25% of pupils

latter make partial or full use of family members as unqual-

who complete primary education go on to secondary

ified workers or apprentices.42

school. A 1999 survey recorded 12,100 apprentices

Despite this formal statement about the existence of tradi-

while a 2005 survey recorded 85,622, of whom 26%

tional apprenticeship, the field survey revealed little to con-

were in the crafts production sector (such as woodwork,

firm the reality of its existence. Some people said that, in

was actually no traditional system established in crafts or services. Others said that there was only the school

apprenticeship scheme offered in training establishments,

involving work placements in businesses rather than the

implementation of a well-balanced combination of class-

room-based training and work experience. Others said that

the term “apprenticeship” referred to the plans for designing

and developing co-operative or dual-type training in associ-

ation with the largest and/or best performing enterprises in

the country. Lastly, the meeting with an official from the Ministry of Employment and Social Affairs made it possible © AFD Working paper No 34

ly acquired within the family or neighbourhood. On this subject, it is worth noting that only 3% of young people

the crafts, services, repairs, transport or trade sectors. The

the light of the situation in Sub-Saharan countries, there

in Ethiopia, as in West African countries, skills are large-

weaving, sewing and so on), the remainder being in the

services sector;43

traditional apprenticeship is not an organised process: there is no curriculum, no training premises, no qualified

trainers and no structured progression;

the main fields concerned are motor mechanics, maintenance and crafts.

42 ECPB (July 2006), Non-Formal TVET Implementation Framework.

43 This data was obtained from the Ministry of Employment and Social Affairs. The 2005 survey on employment and the active population indicates that apprentices represent 0.3% of the 31,435,108 people in work, namely a total of 94,305 apprentices. It also indicates that 50.3% of employees are unpaid family members. Although such employees are not apprentices, it is clear that they learned their trade as they went along, since only a tiny number undertook vocational training. Since the Ministry has no clear picture of the reality of what happens, it wishes to carry out a major study to establish the facts.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

Legislation stipulates that an apprentice should have a contract with a master craftsman or an establishment and work under specified hygiene and safety conditions and in

of means, the Ministry of Employment and Social Affairs fails to apply the legislation as it should. While inspectors

visit workshops to check whether master craftsmen are

defined trades. It further stipulates that the curriculum

complying with ILO apprenticeship safety rules, they pro-

Education and that the apprenticeship should be of defined

ing the regulations.

should be determined in association with the Ministry of

length, but does not fix any time limit. However, due to lack

vide more in the way of advice and assistance than enforc-

4.2. Public policies targeting the creation of micro activities The public authorities and more particularly the Ministry of

The activities undertaken by FEMSEDA and the Dire Dawa

Commerce and Industry have national and regional

REMSEDA form part of this overall approach, while at Addis

scheme, entitled FEMSEDA (Federal Micro and Small

al weavers in order to improve their ability to access the

schemes targeted specifically at

MSEs.44

The national

Enterprises Development Agency), was set up in the time of

the Emperor of Ethiopia to train poor children who had no

other access to education and training. The regional

schemes, entitled REMSEDA (Regional Micro and Small

Enterprises Development Agencies), are currently being set up by FEMSEDA, and also by regional offices of the

Ababa level, the ILO initiative aimed at training professioninternational market is based largely on co-operation with

FEMSEDA.

4.2.1. FEMSEDA entrepreneur training FEMSEDA is a public body attached to the Ministry of

Commerce and Industry. It is organised into three depart-

Ministry for Capacity Building. According to information

ments: quality, planning and training/skills development. Its

in the Tigray and Harar regions. Work in the field included

operates in the clothes-making, woodworking, textiles, pot-

gathered during the survey, REMSEDAs were to be set up

lengthy contact with the Dire Dawa regional agency, the first at national level to take any really serious action.

role is to assist MSEs in meeting their training needs. It also tery, tapestry, weaving sectors, etc.

The agency runs an annual training programme from

The Plan for Accelerated and Sustained Development to

October to March and from March to August. It works in

reports on action carried out in the MSE sector throughout

runs technical four or five month training sessions in sectors

End Poverty (PASDEP 2005/2006-2009/2010), which

technical areas and also in management and finance. It

the country, gives an overall picture of action undertaken by

such as clothes-making, metal and wood-working, three-

firstly indicates that such enterprises play a very important

request of investors wanting to reach international markets,

the various agencies responsible for MSE development. It

month training sessions in clothes-making and, at the

economic role, to the extent that they use people who are

one-month training sessions in weaving. 85% of skills

families to diversify their sources of income. Secondly, the

classroom sessions. FEMSEDA actually has its own prem-

domestic livestock rearing, poultry rearing, silk harvesting,

suitably equipped workshops offering appropriate tech-

largely underemployed in the agricultural sector and enable

document lists sectors with high job-creation potential:

bee-keeping, clothes-making, metal-working, construction

and fast-growing intra-urban services such as waste collec-

acquisition takes place on the job and 15% is acquired in

ises in Addis Ababa, which enables it to provide training in niques for each specialist activity.

tion, car park caretaking, small retail and various repair services. Lastly, it provides detailed figures on the

scheme’s results, indicating that 96,000 MSEs were given a boost at national level and 280,000 jobs were created.

44 A “micro-enterprise” is an enterprise with an annual turnover of less than 20,000 birrs (1,800 euros), and a small enterprise is a unit with a turnover of less than 500,000 birrs (45,000 euros).

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

Training is aimed at the informal, essentially crafts, sector.

business, obtain the necessary start-up capital, draw up

People can undertake the various training sessions without

a financial plan, prepare a marketing plan, hire staff,

having any specific level of skills, with the exception of some, such as tapestry, wood-working and so on, which require level 10, which is in fact TVET Grade 1.

produce and sell and, lastly, develop the business suc-

cessfully;

Improving Your Business. The aim of the course is to

help those who already have an established business to improve and modernise their management practices by

Often, trainers in TVET centres or establishments do not

have the practical capabilities required for organising train-

developing their skills in the areas of market access,

means that, during the holidays, some of them attend train-

agement and business planning;

purchasing, stock control, financial and accounts man-

ing schemes targeted at people in the informal sector. This ing sessions held in FEMSEDA premises.

Acquiring Basic Economic Skills. Following the example of what is offered in South Africa, the idea is to develop

The agency runs training to help MSEs improve the way

entrepreneurial attitudes and provide training in the fun-

package for literate people, which has been designed and

enable participants to distinguish clearly between fami-

they launch or manage their business. It uses a training

produced by ILO. For illiterate people, it uses a World Bank aid that is practical and very visual in design. It offers train-

ing in creating and managing work. In each technical

course, it also includes an introduction to management and

entrepreneurship. All training sessions form part of an

damental concepts of entrepreneurship, in order to ly and professional activities, to encourage them to

keep a cash book and to acquire basic business plan-

ning skills.

All courses are based on active learning methods specifi-

annual training plan. The 2006 plan relating to MSE man-

cally tailored to the needs of the people to be trained. They

ed by FEMSEDA to launch and stimulate the informal sec-

visits, films and the analysis of good practice.

agement provides a clear picture of the means implementtor.

include discussion groups, role-playing, case studies, site

These courses are aimed more particularly at people who

Training plan objectives

want to launch or improve their business and, to this end,

to help individuals wishing to set up their own MSE to

to enable them to acquire the skills they need in order to

training package or as ten half-days of training.

to promote effective and high quality production and

Fees are payable for all courses, except for those with min-

acquire the basic notions of economics;

launch a profitable and successful business; service units in their field of activity.

Courses offered

Courses organised at federal level come under the general title: â&#x20AC;&#x153;Develop a skills-based economic activity through

business creation.â&#x20AC;? They aim to encourage participants to

be self-critical, adopt an entrepreneurial approach and

develop the ability to set up their own business. They are divided into three main types of training:

wish to develop their technical and managerial skills. Each course lasts five days and may be delivered as a one-week

isterial exemptions and those targeting strategic sectors such as clothes-making. The cost is 137 birrs per person,

or 12 euros,45 when delivered on agency premises, and 86

birrs, or 7.8 euros, when delivered off premises. When

courses are run outside Addis Ababa, the cost is 127 birrs, or 11.5 euros.

In 2005, the agency trained 800 people from the informal

sector, including 500 in clothes-making, 150 in design and

120 in the metal-working, wood-working and silk sectors. All

Starting Your Own Business. Training is intended to

of the people trained were selected for their ability to cas-

preneurial attitude so that they know how to set up a

45 Exchange rate at 4 October, 2006.

encourage informal economy workers to adopt an entre-

ÂŠ AFD Working paper No 34

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

cade what they learned to other members of their local

association or co-operative.

4.2.2. The Dire Dawa REMSEDAâ&#x20AC;&#x2122;s integration and support role

The model for empowering people to find work

REMSEDA runs a scheme that enables unemployed and unoccupied people to come together into groupings in order

to work on public interest projects, before gradually devel-

oping such projects into profitable activities. The scheme

The Dire Dawa REMSEDA has been in existence for two

can be described as follows:

economic development project that already existed in the

years. The agency is really the institutional partner in an

region. It currently comprises a planning and programming

thanks to its fortunate public circumstances (financial

resources and the availability of land to establish busi-

department and a research and development department,

ness parks), REMSEDA acts as an economic develop-

service and an MSE development training and promotion

ations and co-operatives of young people and adults

ment and job agency. It supports the creation of associ-

which are in turn subdivided into a piloting and support

(with a maximum of 15 members) as part of works com-

service. Other services are to be added, including a spe-

missioned by public authorities or forming part of the

cialised service to support those developing income-gener-

ating activities, and an information and advice service to

regional development plan. It helps these associations

ent, REMSEDA employs ten staff, soon to be supplement-

units on the public land made available. It sets up infor-

and co-operatives to set up production and services

assist trained people in accessing the job market. At pres-

mation and financial support offices as close to its busi-

ed by a number of experts specialising in the fields in which

ness parks as possible, so as to give the groupings eas-

the agency is involved. The Dire Dawa REMSEDA is in fact

ier access to public and private market opportunities.

the first operational regional agency. Consequently, people

REMSEDA has thus enabled its members to bid for the

are always asking to visit it, and it often serves as an exam-

construction of universities and enterprises, hospital

ple to other agencies that are in the course of being set up.

catering services or the delivery of traditional food to

Strategic intervention areas

local authorities. To date, REMSEDA has facilitated the

creation of 220 co-operatives or associations, including

The agency focuses its work on sectors forming part of the

regionâ&#x20AC;&#x2122;s economic strategy and which make a significant

63 in construction, 43 in food processing, 40 in metal-

works (including road-building), food, textiles, arboriculture,

wood-working, 5 in urban agriculture and so on;

working, 25 in waste disposal, 11 in clothes-making, 6 in

contribution to GDP, such as property development, public

etc. The agency works on the principle that there is a mar-

ket for all of these activities. Construction is one of the

REMSEDA helps to consolidate the work of associations and co-operatives at a professional and financial

areas in which the agency has invested most, particularly

level. It makes technical, financial and management

above-mentioned areas of roads and property, and also in

members of groupings. It helps them to obtain loans

as the Government itself has issued calls for tenders in the local agency creation and the building of schools, training centres and rural development centres.

Local councillors, administrators and the various officials

concerned, including those involved in education and voca-

tional training, meet on a monthly basis. These regional steering groups enable the agency to intervene according

to local development priorities and to play an effective role

in integrating the working population of the informal sector

into the job market.

ÂŠ AFD Working paper No 34

training run by the Dire Dawa TVET College available to

from micro-credit organisations by giving them assistance in drawing up their development plan. To date,

over 2,500 groupings have benefited from loans of up to

20,000 birrs (about 1,800 euros).46 It provides machinery suited to their professional needs and compliant

with technical standards, and advises them throughout

the business development process;

46 Recently the Government decided to guarantee loans from micro credit organisations (to the tune of 212 million birrs, which is about 19 million euros). This will make it possible to provide MSEs with loans of 50,000 to 100,000 birrs (about 9,000 euros).

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

lastly, REMSEDA promotes structured co-operation

ers bringing the stone to town, the various stone-cutters

between MSEs. It helps enterprises to organise trade

who rough-hew the stone, break it into semi-finished

fairs that enable them to compete with private industry

and then finished blocks and those who lay the cobble-

meet export market demand. The agency invited

long and complicated process requiring project-type

products, to sell goods and to position their products to

stones to make the roads and pavements. (This is a

Djiboutian entrepreneurs to fairs that it organised so

organisation that manages each stage from the original

that they could help Dire Dawa MSEs to evaluate the

product to the final stages of hewing and laying. It can

petition. REMSEDA also helped to bring together exist-

agement of the various stages involved in production,

quality of their products in the face of international coming groupings in order to create sector associations. It set up a production and service unit forum with a view

to transferring the responsibility for the creation of such

be successfully completed only through effective man-

from the very start to the finished product);

it operates as a commercial organisation to the extent that the producers involved in each stage are set up as profit-making companies, buy a product at a certain

associations to members of the forum. The idea is that

stage of production, work on it in accordance with pre-

forum members analyse opportunities for creating larg-

determined standards and then sell it after having cal-

er groupings, express their joint training needs and, if

culated the added value and the profit to be distributed

possible, respond jointly to invitations to tender.

to each stone-cutter and layer. The work site assumes

Training activities organised

de facto that there are a series of commercial compa-

technical skills in all sectors: construction (1,012 people),

from members;

nies demanding both management and financial skills

There have been many of these and they have improved

metal- and wood-working (682 people), sewing and textiles

(444 people), urban agriculture (430 people), food processing (411 people), and so on. Training also addressed man-

agement and entrepreneurial skills (4,387 people). Over a

period of two years, a total of 12,935 of the working popu-

lation in the informal sector have received training. It is difficult to evaluate the impact of such training, especially

since it forms part of overall measures to achieve progressive integration into jobs and stable employment. But the

fact that during the same period, 13,056 people found per-

from the discussions held, it emerged that the scheme has a significant effect on those involved. It enables

them to acquire skills (quarrying, stonecutting and laying); it makes them comply with standards and dead-

lines, and lastly, it encourages them to manage their part of the work in accordance with precise and clear

financial and accounting rules. So it includes both

apprenticeship in a trade and apprenticeship in the basic concepts of business management.

manent or temporary employment demonstrates that such

The young people interviewed showed an in-depth knowl-

all process of entry into the world of work.

confirmed that it was a valuable learning experience.

training is at the very least an effective support in the overAn example of job creation: cutting cobblestones for

edge of the entire process of production and marketing and

Several were motivated to organise themselves further, and

were able to develop their work into other areas and func-

paving roads

tions.

cobblestones were being prepared for building or repairing

There is no doubt that the Dire Dawa REMSEDA scheme,

The field survey visited several sites, including one where Dire Dawaâ&#x20AC;&#x2122;s roads and pavements. This site has the following features:

spanning the creation of associations and co-operatives

promoting integration into the world of work through to their

consolidation into micro- and small production and service

it encompasses all manufacturing stages of the final

enterprises, serves as model for development aid. It com-

riers (from outside the Dire Dawa region), the lorry driv-

and vocational integration and the acquisition of financial

product (a 10cm-sided cobblestone), including the quar-

ÂŠ AFD Working paper No 34

bines public intervention with job creation, promotes social

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

and entrepreneurial independence, and, finally, helps sup-

port activities and the creation of enterprises capable of developing in such a way as to help lift people out of pover-

ty.

The field survey was to have highlighted the training activi-

this integration required improved technical skills in weav-

ing and in management capabilities as a pre-requisite for greater market access and increased financing.

In concrete terms, the aim of the current project is to train

weaving MSEs with a view to enabling them to achieve the

ties benefiting Addis Ababa MSEs. However, as the person

following objectives:

not possible. According to the experts met, there would

lar for young people in the capital, with these youngsters

responsible was absent at the time of the interview, this was

seem to be some training aimed at job creation, in particu-

undertaking to cascade what they learn to members of their

association or co-operative.

4.2.3. The Addis Ababa weavers’ training project (ILO)

gain access to improved means of finance;

acquire suitable premises and new-generation looms;

open production to the international market by exploiting new niches in the national market;

improve working conditions;

update products and the production process.

Project stages: training at all skill levels

As part of the survey, the meeting with the ILO established

The project aims to train sector workers at various levels.

study on training in the informal sector and the ILO’s poli-

a close concurrence of opinion between the aims of the

cies in the field. Thus the “Resolution concerning decent

ple working in the informal economy have real business

acumen, creativity, dynamism and innovation and such

This training is for people who want to work in the weav-

ing trade but who have not had the opportunity to learn

work and the informal economy” passed at the 90th session

of the ILO’s general meeting emphasised that “many peo-

Basic level: acquisition of elementary weaving skills.

the skills through traditional apprenticeship schemes.

Intermediate level: improving existing skills. For people who already work in the weaving trade, this is designed

to give them the ability to produce goods of the neces-

potential could flourish if certain obstacles were removed.”

Similarly, an internal document on how to raise the level of

sary quality and quantity required by the international

cannot happen without raising the skills level of workers in

the extent that its purpose is to integrate home workers

the informal

economy47

emphasises that any such efforts

market. This training lies at the heart of the project, to

the informal economy.

The meeting also provided an opportunity to learn about the means which the ILO was making available to Ethiopians working in the weaving sector.

Project objectives: accessing the international market

into standardised production processes at global level and to make them able to respond to the specifications

of international buyers.

Specialised level: training in the design of new products.

There is no doubt that the Ethiopian weaving and clothes-making sector will not be able to develop unless

it produces clothes that conform to the demands of

The project formed part of a co-operative arrangement

international fashion, which requires the radical updat-

national programme for promoting decent jobs. Given that

This training is aimed at a limited number of designers

between the ILO and the Ethiopian Government within the

the programme aimed to promote sustainable development

and reduce poverty, the ILO identified cotton, textiles and more broadly clothes-making as priority sectors, following

the end of the 1974 multi-fibre agreement. Specific studies

had in fact demonstrated the benefits of incorporating this sub-sector into the national value chain48 and identified that

ing of existing products and usual production methods.

47 The document aims to define routes for the gradual formalisation of the informal economy and sets as an objective for the next ten years the elimination of all legislative, economic and administrative factors that foster the existence of the informal economy.

48 In the internal project presentation document (Technical Cooperation Summary Project Outline), the ILO defines the value chain as all the activities required for creating a product or service from its design to delivery. It stresses that the challenge in this particular case is to improve the competitiveness and effectiveness of the entire value chain, with the aim of supporting jobs creation and boosting economic growth.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

and clothes-makers who will act as the link with interna-

The overall project proposes to run dual-type training and

tional market aspirations and specialise in the ranges

entails major educational work on vocational apprentice-

Specialised level: training in the design of new woven

quality and production standards demanded by internation-

demanded by this market.

products. This is to train clothes-makers to produce the

new ranges created by the designers, in accordance

with standards, and to adopt the new weaving and

clothes-making techniques demanded by this market.

The purpose of these various training courses is not to

replace existing training but to support what already exists

ships and on upgrading host enterprises with regard to the al competition. This means that the project will succeed

only if all the partners involved (sector professionals, train-

ing providers, exporters, weaving, clothes-making and design technology experts, and so on) work together for the success of the operation.

The current project has the great advantage of combining

by complementing and improving it. They will be run in

elements likely to stimulate training in the informal sector:

both enterprises and private providers, in particular NGOs.

development linked to the production of goods and servic-

association with FEMSEDA, the priority being to support

It is all about using training to foster the growth of sustain-

able production capable of providing jobs, while at the same time accessing international market outlets.

Fees will be payable for the training, although the ILO pro-

vides financial support, particularly in the acquisition of

basic skills, to people who cannot afford their training.

Expected results: integration of the informal economy into

a buoyant market

The overall aim of the project is to encourage job creation in the informal sector, refocus public and especially private training on demand and on the issues facing the weaving

and clothes-making sector, facilitate access for all enterprises to invitations to tender and market opportunities, and

develop a favourable legislative and administrative environment in the informal sector for creating decent jobs.

More concretely, it aims to achieve the following results:

intervention targeted specifically at people in MSEs, skills es complying with international standards, the involvement

of professionals and training providers in the process of skills development and, lastly, a sustainable development

project that will gradually equip MSEs in the informal sector

with recognised skills and a real capacity to access nation-

al and international markets.

All these elements suggest that it will be worthwhile and

indeed important to evaluate the results obtained as the

project progresses. This will provide matter for reflection

and analysis regarding the contribution training can make to

the economic success of the informal sector.

4.2.4. On-site training for MSEs in the building sector (GTZ)

Germany, or more precisely the GTZ, assumed project

ownership of the construction by the Ethiopian Government

of the university of Dire Dawa. The university is to admit its first students in autumn 2006 and, when completed, will

have the capacity to accept about 10,000 students. A fea-

evaluate the training currently available in Addis Ababa

ture of the site is that it is a sort of â&#x20AC;&#x153;on-site schoolâ&#x20AC;? for many

identified, improve the content, the training of trainers

TVET colleges who are on vocational placement there.

in the field of basic skills and, depending on the gaps and apprenticeship methods;

carry out a similar evaluation at intermediate level, in

MSE sub-contractors involved and for young people from Training combined with on-site experience

design training and in the use of new techniques, and

Every day, employees of small enterprises working on the

with professionals in the sector, curricula and training

the German person in charge. This trainer is specifically

ods of certification required.

involved, with the support of an Ethiopian manager who

create and test, where necessary and in association

methods appropriate to the objectives set and the meth-

ÂŠ AFD Working paper No 34

building site receive training given at the end of the day by

charged with raising skill levels among the many MSEs

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

acts as interpreter when necessary, and ensures that

everyone understands the information conveyed. The train-

er starts from the work done every day, takes concrete

The reasons for keeping to tradition at all costs are low-

budget contracts that do not specify technical constraints,

but perhaps, at an even deeper level, there is the weight of

examples from the moulding and drying of bricks, the pour-

tradition: “we’ve always done it like that, so why change

From such working situations, he goes back over measure-

the relationship between training, tradition and technologi-

ing of concrete screed or the erection of partitions or walls.

ment-taking, shuttering techniques, new concrete finishing standards and, using these examples, he tries to gradually

something that works?” This poses the problem not only of

cal innovation, but also of how to implement the means and

methodologies for acquiring skills that integrate resistance

improve the quality of the work and the techniques used.

to cultural change as an inevitable dimension in the qualifi-

tical application is in keeping with the experience of build-

the solutions cannot ignore the fact that training on its own

The entire process of alternating between theory and prac-

ing construction. The various training sessions give rise to

evaluations and, in the end, are incorporated into a certified

training curriculum. Workers trained in this way can improve

their vocational qualifications while working on the job, and

cation process. Whatever the answers to these problems,

cannot overcome the resistance to change and that specific approaches to taking innovation on board in a cultural context have to be designed and implemented.

they emerge finally with a higher level of vocational skills.

The field survey’s pinpointing of the actions taken to bene-

The difficult link between training, cultural tradition and

to highlight the importance given by the federal and region-

fit informal MSEs is inevitably limited. It suffices, however,

innovation

al authorities (FEMSEDA and REMSEDA) and internation-

the limits of this training initiative as a form of apprentice-

prises. They are actually alone in being able to integrate

The site visit enabled discussion with the project owners on

ship in modern construction techniques. One of the problems encountered is the resistance of the enterprises on

site to the application of present day construction procedures. This resistance concerns the concrete shuttering

al organisations (ILO and GTZ) to developing such entervery many young people and adults into the world of work

and, more fundamental still, to foster the dynamics of effective local development. The examples recorded demonstrate that well-structured integration and training can lead

and is evidenced by the workers’ refusal to discontinue the

to job creation and stable employment and thus help the

concrete (using it means that paint cannot be applied direct-

for a standard of living that is above the poverty threshold.

ing the surfaces with a view to applying a roughcast onto

tors in which job creation and employment can go beyond

widespread Ethiopian practice of using oil to obtain smooth

ly to the surfaces underneath the shuttering) and of scratchwhich the paint will be applied. It also concerns shuttering

population to rise above mere survival level and give hope

They also emphasise the fact that there are buoyant secthe local market and access production and service levels

techniques (single-use wooden shuttering, as opposed to

suited to the national and international markets. But this is

mortar (strong resistance to using wheelbarrows instead of

region) that support for income-generating job creation and

reusable shuttering) and the transportation of cement or traditional carrying methods).

possible only on the condition (achieved by the Dire Dawa the fight against poverty is incorporated into a sustainable

economic and social growth strategy and, in the medium term, clearly defined together with all the stakeholders

involved.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

4.3. The strategic role of women in the informal sector The field study made it possible to widen the scope of the

DDWEA aims to provide training both in technical skills and

initiatives launched in the informal sector to include training

in those related to enterprise management and develop-

There is no doubt that Ethiopian women’s associations play

areas including: textiles, clothes-making, food processing,

and start-up activities promoted by women’s associations.

ment. Training programmes thus cover a wide variety of

a significant role in the informal sector. This has been evi-

urban agriculture, business management and entrepre-

role women play in the development of the country, but also

keting. Training sessions last about eight days and are run

denced by PASDEP, which stresses not only the strategic

the need to improve labour market access for women in order to achieve this development. The initiatives are all

funded or supported by donors and international development aid and support agencies.

4.3.1. The ILO survey and the profile of women entrepreneurs

The ILO study (2003) entitled “Ethiopian Women

neurship, financial management, communication and mar-

by an outside consultant specialising in the relevant field.

While the majority of requests for training focus on entre-

preneurship (three sessions are organised during the year),

the types of training that have the most immediate impact

are those in clothes-making, food processing and vegetable

growing.

DDWEA operates in the informal sector in the sense that its

Entrepreneurs: Going for Growth” also showed women’s

members are micro-enterprises working in the local market

sample studied, it found that 123 women entrepreneurs had

of 5 birrs (or 0.45 euros) per month. DDWEA is financed

positive impact on development in the country. From the

created 852 jobs for their immediate families and relatives.

essentially for local customers. There is a membership fee largely through member contributions, although it also

This included 596 full-time jobs, with an average 4.8 jobs

attracts financial aid from the European Union, USAID, the

been either employed in the informal sector or simply

The total annual budget is 151,946 birrs (or 13,700 euros).

per enterprise. Previously, about 70% of these women had

housewives. Most of the women had to draw on personal or

Friedrich Ebert Foundation and other international donors.

The cost of training per person is in the region of 1,000 birrs

family resources to launch their enterprises. These are in a

(or 90 euros).

duction and handicrafts. One of the characteristics of these

DDWEA does not appear to make a very detailed analysis

wide variety of sectors, such as services, commerce, proactivities is that they all address the local market, and more

of its members’ training needs or of the impact of its work.

almost 90% of the women interviewed said they found

neurs have decided to join forces to provide skills training

specifically the local community market. Another is that working on their own account immensely satisfying, while

75% said they would not want to leave their current work for a permanent job.

4.3.2. Dire Dawa Women Entrepreneurs Association (DDWEA)

This association was created in 2000. It has today 250

Nevertheless, the fact that the Dire Dawa women entreprerelevant to their expanding activities gives an indication of

the success of the action plan.

4.3.3. Dire Dawa Women’s Association (DDWA) DDWA, which was founded in 2004, has 5000 members

and 9 local groups. Its financial resources come from membership fees and the financial support given by Pathfinders

members, most of whom are MSEs. The executive commit-

International. The aim of the association is to help HIV-pos-

needs. About 300 women entrepreneurs are trained each

activities. To this end, it has set up “Singer workshops” (so

increase.

workshops for producing items of clothing. The women

tee meets once a month to determine members’ training

year, and the number of requests for training is on the

itive women and prostitutes develop income-generating

named after the German sewing machines), which are

receive practical training in making clothes specifically for Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

the local market, and other training in sales, accounting and

business management. All the training is provided by the TVET College visited during the survey.

The second strand of the action plan takes the form of an

(including husbands), women trainers in existing training

centres, key persons in administrative departments and

NGOs directly involved in support programmes for women,

persons in regional offices with special responsibility for

education and women’s affairs, and trainers in TVET

awareness campaign designed to help the women involved

Colleges.

with their condition and change their behaviour. Members of

Women in key positions or responsible for the operational

in the income-generating activities both to come to terms

DDWA thus go from home to home and urge women who

have AIDS to accept the fact and agree to treatment. They

give the women instruction in bottle-feeding to prevent the children from contracting the disease through their mother’s

milk, and put the women in contact with organisations spe-

delivery of support programmes for poor women will be

given introductory briefings on the contents and methods of the different types of training delivered. Special emphasis

will be put on the conditions necessary for successfully

completing action plans aimed at helping women to devel-

cialised in treating AIDS so that they have better access to

op income-generating activities.

rules of hygiene when carrying out domestic tasks.

The contents of the training programmes will be based on

medical care. The women are also taught to respect certain

both the educational level of the women concerned and an

DDWA has 20 social care workers who have been trained

assessment of the economic potential of the local market.

mode of operation is mutual training: in other words, a

ment, group training on opportunities and procedures for

to assist women in need. A principle central to DDWA’s

woman trained by the association agrees either to pass on to another what she has learned, or to take part in an

awareness-raising campaign for women needing assis-

tance or support. The action plan is an excellent example of how social and economic integration can be achieved.

4.3.4. A training programme for empowering women

The Integrated Programme for the Empowerment of

Women, a pilot programme developed by the Institute for

All the programmes will offer training in enterprise develop-

starting up income-generating activities, and access to micro-credit.

The complete training course will last a minimum 360 hours

spread over three years. It will be organised to take into account the women’s particular circumstances: work-load,

the seasonal character of their work, and their family responsibilities. The three basic components of the action programme (functional literacy, the acquisition of practical

skills for career development in a given sector, and facilitat-

International Co-operation under the aegis of the German

ing the transition from learning to working situations through

the country’s overall development strategy. It aims to pro-

cific needs. Financial aid for start-up operations will be

Institute for Adult Education (IIZ/DW),49 is an integral part of

vide capacity-building support for poor women and their families by combining three types of action:

adult literacy programmes;

training to promote income-generating activities;

training in entrepreneurship focusing on management skills and funding opportunities for starting up a manu-

facturing or service enterprise.

The project, which began in July 2006, is planned to last for

five years and funded by the Dutch Embassy in Ethiopia. Its main target groups are poor women and their families © AFD Working paper No 34

access to micro-credit) will be tailored to the women’s spe-

available through a special fund but subject to certain conditions: the women should be able to read, write and count, and demonstrate that they are capable of managing an income-generating enterprise and keeping accounts.

The action plan will be closely monitored. A national steering committee will be set up and have special responsibili-

ty for co-ordinating the umbrella project at the regional and

local level. It will keep a particular watch on programmes at 49 Institut für internationale Zusammenarbeit des Deutschen Volkshochschul-Verbandes, which aims to promote education in the informal sector in East Africa.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

the local level to make sure that these work with rather than

who will evaluate the actions and their results and provide

simply add to other projects initiated by government organ-

relevant support for achieving overall aims.

and other local community or religious groups. The project

The total budget (8,215 euros) should enable the project

isations, NGOs, local or regional women’s associations, will also benefit from the assistance of a panel of experts

to achieve its objectives.

4.4. Varied experiences from the world of agriculture The field survey failed to identify exhaustively what training

ried out on the informal urban sector take only very partial

PASDEP presentation did shed light on the official reports

any action taken to foster the creation of income-generating

had been carried out in the agricultural sector. However, the produced by the Ministry for Finance and Economic Development. Secondly, and thanks to the German devel-

opment agencies, it was possible to pinpoint the difficulties encountered by rural area training centres in providing

training tailored to the needs of local people. Lastly, it pro-

vided an opportunity to visit a technical and vocational body

that is developing innovative co-operative training approaches among farmers.

4.4.1. The highly informal nature of employment in rural areas

86% of Ethiopia’s working population lives in rural areas,

although not all of them are employed in agriculture. Breaking down the working population into job

account of informal economic activity in Ethiopia. Moreover,

activities, as well as MSEs, must take account of not only

agricultural and rural production and services units, but also urban production and services units.

4.4.2. Training farmers and agricultural development officials

According to the report drawn up by PASDEP, the policy

implemented by the Ministry of Agriculture consisted of a

programme (still in progress) of intensive training for farm-

ers and rural development officials. It has led to the networking of agricultural training centres and then to the delivery of training curricula designed for practical use in these centres. Thus, depending on the type of local crop and

categories50

activity, the various centres provide information and day-to-

fishing account for 44.5% of the working population, while

demonstration sites for certain types of crop-growing or ani-

actually reveals that qualified workers in agriculture and

those in services and crafts total 10%. The remainder are

day help to farmers in the surrounding area, and serve as

mal husbandry (such as bee-keeping or vegetable produc-

identified under the term “elementary jobs”, a term that

tion).

tries and agriculture. It is therefore impossible to establish

In more concrete terms, the centres run 2- or 3-month train-

sively in agriculture or related activities, with the exception

cialist techniques, such as cultivation using irrigation or silk-

refers to day labourers in the construction or mining indushow many of the working population are employed excluof skilled workers.

ing modules to help farmers adopt technologies and speworm breeding. At a broader level, the various education

and training establishments are currently training 55,000

Comparative analysis of workers in rural and urban areas

development agents. 45,000 are to be placed in agricultur-

structure as regards freelance or self-employed workers,

5,000 will operate in the veterinary field and 5,000 will pro-

by job type reveals a very homogeneous labour market

who represent 40.3% and 41% of the overall labour force

respectively. It indicates that domestic jobs are much higher in rural areas (54.6%) than in urban areas (15%). Given

that such jobs are very characteristic of a non-structured

economy, it can be concluded that statistical analyses car-

al training centres to provide direct support to farmers, vide support to existing co-operatives. At the end of 2005, 23,000 of these agents had obtained their qualification and were placed in centres.

50 Labour Force Survey (2005), Op.cit.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

During the course of the survey, it was impossible to evaluate the results of the entire programme. Some of the people met expressed doubts about the effectiveness of the

ty of the district, the centres were run jointly by the various

sectoral managers, namely for education, health and agriculture, with the education office running the establishment.

training, because it focused more on transferring knowl-

However, it very soon became apparent that co-operation

tional skills.

anticipated results, and the CSTCs gradually became

edge to farmers than really helping them acquire opera4.4.3. Training the rural population in community skills training centres (CSTC)51

among the various administrations was not producing the directly dependent on the financial and human resources of the woredas.

Agricultural training centres are not the only training facili-

It is in this context that the CSTCs delivered training to peo-

facilities in the Oromiya52 region, one of the largest in

provision was either very limited (for example, 25 people

ties available in agricultural areas. An analysis of training

Ethiopia, indicates that it has 38 training establishments

offering technical education and vocational training at level

ple in rural areas. According to the data gathered, training

trained per year in the Oromiya region) or unsuited to the

needs of the local job market. According to Ministry of

10+1 and 10+2 in 20 different trades, 11 agricultural train-

Education data, the CSTCs trained 100,000 adults between

latter, offering informal type training, are aimed primarily at

areas.

from rural areas. They are currently being reformed and

The EXPRO project or the setting up of model CSTCs

tional training provision.

In 2002, the Institute for International Co-operation of the

ing centres, 6 health training centres and 154 CSTCs. The

young people excluded from the school system and adults should eventually be better integrated into the overall voca-

1978 and 1991, with the majority being farmers in rural

focussing on job creation training German

What are CSTCs?

Adult

Internationale

Education

Association

Zusammenarbeit

des

(Institut

fĂźr

Deutschen

At present, it is difficult to understand the role of CSTCs

Volkshochschulverbandes - IIZ-DVV) decided, with special

were created in 1976, when the public authorities first

tion

without knowing their history. The first community centres launched a massive literacy campaign. Initially, CSTCs were set up at woreda53 level in order to foster integrated

rural development. The objectives may be defined as fol-

lows:

to introduce and disseminate technology suited to the

to improve backward agricultural practices through

to train members of the local community and enable

funding from the German Ministry for Economic Co-operaand

Development

(Bundesministerium

fĂźr

wirtschaftliche Zusammenarbeit - BMZ), to set up a non-formal training project, entitled EXPRO,54 which focuses on

the creation of subsistence activities. The aim of the project

was to breathe new life into the CSTCs in various geographical and socio-economic contexts and to develop a

new centre model based on vocational training able to

needs of the rural community, particularly farmers;

encourage the people trained, especially in rural areas, to

appropriate training schemes;

2015 Action Programme set up by the German Government

them to acquire the skills they need in order to do their job;

to operate as a resource centre for the population concerned.

The initial plan had been to create a CSTC in each woreda.

According to available data, 404 were operational at the

beginning of the 90s. Under the administrative responsibiliÂŠ AFD Working paper No 34

create income-generating jobs. EXPRO was involved in the in 2001 with a view to helping Ethiopia combat poverty and

51 Information on CSTCs or Community Skills Training Centres is taken from the IIZ-DVV paper (2005), Poverty Reduction and Capacity Building through Livelihood Skill Training at CSTCs and VTCs, Internal Paper No.33.

52 Oromiya Regional State, TVET Commission (2003), Regional Technical and Vocational Education and Training (TVET) Policy. 53 A woreda is an administrative sub-division in Ethiopia equivalent to a district. A woreda is itself divided into kebeles which correspond in size to an urban area or a delimited rural area.

54 Bernd Sandhaas, IIZ/DVV, (2004), Community Based Non-formal Livelihood Skills Training for Youth and. Adults in Selected Regions of Ethiopia.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

achieve the Millennium Goals. It was also in line with the

second Education Sector Development Programme (ESDP

II) run by the public authorities for the 2002-2005 period,

ologies and assumptions, such as the use of participative rural problem identification, participative project planning and market analysis prior to training needs assessment.

the aim of which was to deliver basic training in 43 new

Training was targeted at subsistence jobs and the people

have the ten years of schooling required to access TVET, or

ed access for these people to sufficient loans to support the

CSTCs to 65,000 young people and adults who did not

who often had no education at all.

The current project has the following objectives:

to raise awareness among decision-makers, involved

training. It also defined ten criteria or conditions for effective

education;

tre had the opportunity to develop and deliver job creation

delivery: the need to complete a prior analysis of the cen-

to develop and/or modify non-formal training pro-

treâ&#x20AC;&#x2122;s situation, the surrounding job market, training needs

programmes for adults and similar initiatives, with a

training in an annual training programme and establishing

grammes delivered by the CSTCs, functional literacy

ulations;

to provide training for CSTC trainers and administrative staff to help them to plan, implement and evaluate adult

and available human and technical resources; rooting the clear selection procedures and criteria for the target group and qualified trainers for these people; drawing up simple curricula based on detailed frames of reference, and failing that, on practical skills, effective and qualitative monitoring

of training delivery and putting in place tools to evaluate the

demand and income generation;

results of the training and its impact.

tional training centres and agricultural centres in specif-

EXPRO is still running today. The results for the end of

els with acknowledged non-formal training programmes

ating only in 2005) are as follows: 2,013 people trained,

to select a small number of community centres, vocaic regions in order to make them service delivery mod-

scheme.

training young people and adults through non-formal

education programmes and projects focusing on

stakeholders responsible for implementing the entire

The project also defined the conditions under which a cen-

view to effectively meeting the needs of the target pop

creation of income-generating jobs, as well as strengthen-

ing analytical capacity, training and dialogue among the

NGOs and national, regional and district level commu-

nity organisations as to the need and opportunities for

keen on doing them. At the same time, the project advocat-

2004 in the 17 model centres (some of which started oper-

focusing on demand and income generation for young

including 541 men and 1,472 women. None of the people

to set up, in various public, private or community centres

Although there is no accurate assessment of the impact of

(FAL) projects and strengthen co-operation between

indicated that the training had improved the situation of the

people and adults;

in rural areas especially, model functional adult literacy

trained were landowners and all were unemployed.

the training delivered, two thirds of the centres operating

regional and local governments/administrations on the

people trained. Although they did not all obtain work imme-

other.

pete effectively on the local job market, and they were moti-

one hand, and the public authorities and NGOs on the

diately, they all acquired skills that enabled them to com-

vated to create, either alone or in collaboration with others,

The project also set up a work programme based on aware-

income-generating work.

non-formal training issues, on their involvement in the vari-

The upshot of these results is that many CSTCs are cur-

ment of target groups and their communities in the design

able to benefit from project funds to deliver training aimed

ness-raising among decision-makers and managers on

ous district and establishment councils, and on the involveand delivery of the training. It promoted working method-

ÂŠ AFD Working paper No 34

rently asking to set up the same type of training and to be at job creation.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

4.4.4. The innovative activities of the Harar technical and agricultural training centre

The centre was set up and continues to be funded by a German foundation.55 Its strategy is to work with farmers

committed to rural development. It initially organised train-

experiment is validated, the model farmer cascades the

process to his contact farmer, who in turn reaps the benefit.

The centre also trained two development officials who in

ing lasting nine months, but subsequently reduced this to

turn have trained farmers in their area. Furthermore, the

requests and availability of farmers. It intervenes in various

Higher Education to train 50 people per year to degree level

three months and then to three weeks, depending on the

areas, including the preservation of natural resources, agricultural production, dairy farming, household economics

centre received prior accreditation from the Ministry of in agricultural disciplines.

and care of animals. The centre has moved from quantita-

Example one: creating model farms in the field of milk

ular with research centres, and improves animal breeding

Main aims of the project:

tive training to training in specialist areas. It works in partic(crossbreeding cows to adapt them to local conditions, importing poultry from Egypt, and so on).

From model farmer to “copy” farmer: training of professionals by professionals

production

To help farmers expand their milk herds and achieve a daily

level of milk production enabling them to substantially

improve their subsistence income. To this end, the centre

helps the farmer to attain optimum milk production levels

The centre established a training model based on mutual

and management without using grazing pasture.

farmers into two categories: model farmers and “copy” or

The experiment is run on the model farm and then trans-

training among farmers. In this respect, it classified farms or

contact

farmers.56

The distinction is not based on education

level since some model farmers have eight years of basic

ferred to the copy farm, provided that farm is able to buy or own a herd genetically suited to gradually increasing milk

education while others are quite simply illiterate. It is based

production.

op.

The model farmers selected are trained at the centre once

A farmer is a model farmer when he has a sense of and a

cascading the experiment to copy farms. Experience

exclusively on people’s motivation and keenness to devel-

desire for progress, develops relationships with other farm-

ers and is capable of evaluating different approaches nec-

essary for introducing new cultivation or animal husbandry

the project is set up. The aim of the training is to facilitate demonstrates that farmer-to-farmer transfer is quicker than

trainer to farmer. Model farms serve as case studies for

training in the centre and for studies into improving milk pro-

methods. A hundred days after he begins his own experi-

duction.

skills to the farmers he is in charge of. The model farmer

Project implementation methods

or contact farmer implements what his mentor transmits to

Model farmers must have a farm and be prepared to cover

ment, he then becomes responsible for transferring his new

maintains close contact with the training centre. The “copy”

him. He has no direct relationship with the training centre, except in the event of serious problems that the model

farmer is unable to resolve.

The process operates as follows: the centre experiments

with new methods of cultivation or animal husbandry. It then transfers the experiment to the model farmer, who contin-

25% of the set-up costs. They must have access to running

water or have land where they can sink a well. They must

undertake not to allow their herd to graze on pasture and to

carry out the project with the help of the centre until they are

economically independent. The centre provides participat-

55 It is the Menschen für Menschen foundation established by the German actor, Karl Heinz Boehm, at the time of the 1981 drought. 56 The centre uses the “model farm” and “copy farm” concepts.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

ing farmers with a heifer in calf, either free of charge, on

The project itself

cial incentive method best suits their particular circum-

Since it is not so easy to introduce new ideas and new farm-

tance is free for the first year. If the milk producer already

tives from the centre to the farmers involved.

credit or through a savings or rebate plan, whichever finan-

stances. The cost of treatments, vaccinations and assis-

has a dairy, he receives the amount of money required to

ing practices, launching the project requires some incen-

update or maintain it.

As with the milk production project, farmers must have a

A contractual agreement lays down the responsibilities to

have access to running water and agree to keep all brood-

be shared between the centre and the farmers selected.

The estimated overall cost per farmer is 4,365 birrs (about 400 euros).

An operational plan lays down what has to be done to launch each operation. Short-term training is given during

plot of land and cover 25% of the set-up costs. They must ers away from the hen- house. As with the preceding project, they sign an agreement regarding responsibilities

shared with the centre and undertake to continue until they are self-sufficient.

The centre provides farmers with hens of a certain age for

the set-up stage and successful farmers are certified as

a fixed period free of charge. They can also buy them at low

cascade his know-how to copy farmers. Farmers also

As with the preceding project, all treatment costs, vaccina-

“milk producers”. This certification allows each farmer to receive specifications laying down standards regarding quality, production times and hygiene.

Example two: creating model farms in the field of poultry-

rearing

Project objectives

prices from the centre’s breeding unit or buy fertilised eggs.

tion and other support are paid by the centre for the first year. The estimated cost for setting up a poultry-rearing unit is 2030 birrs per unit, or about 180 euros.

There is a detailed plan for setting up each hen-house.

Model farmers are certified as “poultry producers”, which

The aim is to introduce poultry rearing, which is considered

to be one of the most productive activities in terms of the creation of income-generating jobs. Small poultry-rearing

units can be set up with a minimum of investment and cost

allows each farmer to cascade his know-how to copy farmers. They also receive specifications laying down standards regarding quality, production times and hygiene.

4.4.5. NGO actions

to farmers and can very soon cover daily expenses and

The field survey could be no more than limited and selec-

levels can later raise the farmer’s standard of living.

ments such as those run by NGOs. It had only documentary

provide a minimum income. Gradual growth in production

The poultry is genetically improved. The farmers selected

tive. There was no possibility of contact with other experi-

access to very interesting experiments run by FARM Africa.

This NGO, which has been working in Ethiopia since 1988,

benefit from these improvements, as do the other farmers

is developing innovative solutions through partnerships with

domestically reared poultry with imported poultry.

example of the Harar centre, it intervenes in the animal hus-

who meet defined rearing criteria. The aim is to compare

The farmers selected receive short-term training on how to

organise the hen houses, feed the poultry and avoid diseases through prevention and control. The aim is to enable

them to cascade their know-how to copy farmers. Both

local communities and farmers themselves.57 Following the

bandry field and thereby helps women in the Afar and

Oromiya areas to combat poverty. It provided training for these women, enabled them to buy goats in order to set up a goat-herding activity and thereby earn a minimum income

for themselves and their families. The NGO highlights the 57 Information is available on Farm Africa’s web site. This NGO is developing several projects in Ethiopia with help from the European Union and CORDAID.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

4. Current training initiatives in the informal sector

example of Abebech, who received two goats on credit, was

slaughtering, set up meat drying procedures and manage

able to treat up to 70 animals per month.

ditions.

A project launched and run jointly by various NGOs includ-

There is therefore no doubt that numerous initiatives, which

Development and the Afar animal husbandry development

areas, although they do not all reach the critical mass

drought, respond to emergencies in the case of enforced

ing over 30% of the people living there.

trained in providing elementary veterinary care and is now

ing, Farm Africa, Care Ethiopia, SOS Sahel, Action for association, aims to assist and train farmers to deal with

ÂŠ AFD Working paper No 34

model Prosopis plantations that resist severe drought con-

are too many to list, are under way in Ethiopiaâ&#x20AC;&#x2122;s vast rural

required to significantly reduce the extreme poverty affect-

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

5.1. TVET reform and the opportunities for the informal sector The current TVET reform aims to focus vocational training

5.1.1. Training institutions can ensure that trai-

to provide access to such training for those working in the

economic development

on the countryâ&#x20AC;&#x2122;s economic development needs, and notably

informal sector. The priority target groups are clearly listed

ning becomes an effective aspect of social and The Ethiopian TVET reform puts informal sector objectives

in the official paper on the national strategy in this area:

and target groups at the heart of the vocational education

training, entrepreneurs and employees in the informal sec-

Summer 2006,59 which clearly emphasises the need to pro-

school dropouts, illiterate people, persons with no formal

tor needing skills recognition or further skills training, farm-

and training system. Thus the strategy paper published in mote self-employment and the development of MSEs, also

ers and their families, the unemployed and the underem-

includes basic training in entrepreneurship and manage-

and those categories of persons who have difficulty finding

schemes. The changes in training programme content and

ployed who need improved access to the labour market, work due to their family situation (single women), their eth-

nic origins, or handicap.58 All of these target groups work

outside of the formally structured sector.

ment skills in informal, non-formal and formal training

organisation will undoubtedly give informal sector players

improved access to training and thus enhance their employment prospects.

However, studies carried out in different Sub-Saharan

Linking training schemes to economic strategy and labour

to address the needs of craftworkers, the self-employed or

One of the most significant aspects of the reform is that it

countries show that re-focusing the formal training system owners of informal production units in industrial, trade or

market needs

allows training institutions to tailor their training provision to

service activities will not in itself be enough to encourage

the local economic development and labour market. The

only come from initiatives within the informal sector itself, if

sons at the TVET College there provided interesting infor-

their interest in training. Rather, the uptake of training can

field study at Dire Dawa and the interviews with key per-

those working in the sector take on responsibility for organ-

mation on what has been done in this respect.

raise awareness about the benefits of training and skills

In order to link training with local priorities in economic

ising, at an occupational level, the actors involved, and also development.

development and employment, the Dire Dawa College

takes part in three-monthly meetings with the city Mayor,

In this respect the TVET reform in Ethiopia marks a step for-

the director of the offices of the Ministry for Capacity

taken into account if the objectives are to be achieved.

Through these meetings, at which local policy, strategy and

ward. Yet there are also certain weaknesses that need to be

Building, the REMSEDA director and other key persons.

58 Ministry of Education (2006), Op.cit. 59 Op.cit.

ÂŠ AFD Working paper No 34

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

action plans are defined, the College, in partnership with

chance of arousing interest and of being taken up. Flexible

plays an active part in helping young people to find work

Flexibility should also be an essential component of teach-

tributes to the local authoritiesâ&#x20AC;&#x2122; effort to reduce the number

ered as close as possible to the place of work, and the con-

analysing the training needs of MSEs and, on the basis of

approach. Training modules should also be flexible enough

REMSEDA and the real-estate and public works sectors, and start up their own enterprise. By the same token, it conof unemployed persons in the city by 10%. It also assists in

the results, develops training curricula for sectors with job-

creating potential, such as food processing, stone masonry

scheduling, however, is not the only consideration.

ing methodology and follow-up: training will thus be deliv-

straints of work should be reflected in the teaching

to allow sufficient time for those attending courses after a

dayâ&#x20AC;&#x2122;s work to assimilate new skills learning at an appropri-

and sewing. As a result of this direct involvement with other

ate rhythm.

tion at the centre and 2,500 other persons in training

The Dire Dawa College has taken full measure of the local

ment and employment needs in the non-formal and informal

training schemes for workers in the building construction,

local players, there are now 1,192 pupils in formal educaschemes more specifically designed to meet the develop-

sectors.

environment and now provides a wide variety of customised

road construction and food processing sectors. For exam-

ple, there are one- to two-week sessions and evening or

The TVET reform also gives the College authority to

weekend courses according to demand or trainee availabil-

mal education. In the majority of the countries studied, train-

now working in direct contact with 75 associations or co-

change the internal training process, even as regards foring institutions have nationally determined teaching obliga-

tions, and any modification of the qualification or certification systems to suit local needs is a lengthy process. The

ity, and real on-the-job training. As a result, the College is operative groups with 15 or so members each. In addition

to delivering relevant skills training, the College provides

post-training support and advisory services designed to

reform in Ethiopia offers an effective means of combining

help users find work and obtain funding for starting up a

freedom to adapt these standards to locally defined course

encourages training providers to introduce more flexibility

the move towards national occupational standards with the content and curricula. The Dire Dawa TVET College thus

opens up or closes down formal training sections (10+1, 10+2, 10+3) according to market needs. It is also changing existing training provision: this can be in the light of local

new enterprise. The current TVET reform clearly not only and modularity into existing training schemes, but also gives them real opportunities for re-directing their training efforts according to target group needs.

policy changes, or further to an analysis carried out by each

More flexible budgetary control for better investment and

which means that they can make the most appropriate

The reform also explicitly reinforces the power of public

department into skills shortages that need to be catered for,

changes to course content.

Training can be adapted to the needs and circumstances

of the informal sector

The reform has also introduced the concept of flexible,

modular courses aimed at giving young persons and adult

MSE entrepreneurs in the informal sector improved access

to training. This is a pre-requisite for encouraging these tar-

get groups to take up the training available. Indeed, studies in Benin and South Africa show that only those training

schemes adapted to the work pattern of craftworkers,

traders and various service sector workers have any

ÂŠ AFD Working paper No 34

training

sector training centres to act and take decisions. Ministerial

directives on the reform show that the authorities aim to delegate maximum responsibility to the directors of these

establishments: delegation is seen as the best way of

ensuring that training provision is tailored to local market

requirements. According to the same directives, in the

longer term, training institutions will be accountable for their actions, and funding will be performance-related.

The decision-makers at Dire Dawa College have already

shown that they are making full use of their authority to act

by closing training programmes offering few or no employ-

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

ment prospects, and by preparing curricula and modules

by the professions in a given sector, and reflect the ability

totally in line with local economic development and jobs

to carry on a trade at a certain level of responsibility and

unless coupled with the authority for financial and budget-

expected that the TVET reform will have positive effects in

strategies. However, such authority is not truly meaningful

ary decision-making. The College has developed incomegenerating activities to finance its activities: re-upholstering

seats in a cinema nearby not only provides income, but also

with the relevant skills. With this change in approach, It is

the informal sector.

The decisive choice of assessing educational outcomes

serves as a vehicle for apprenticeship arrangements;

and skills acquisition

rewards as well as giving trainees hands-on experience.

dures as defined by the National Qualifications Standards

organising the plumbing in the College brings financial

The new emphasis on assessment and certification proce-

These activities are but two examples of the latitude the

changes the very nature of the training system: it marks a

The profits generated by these activities are included

assessment either through trade testing or through formal,

College has for creating “training-production” opportunities.60

in the College budget, and are allocated by the College for upgrading equipment to maintain quality, needs-related

radical move away from content-based learning to skills non-formal or informal educational channels. This change

in perspective is of fundamental importance to workers in

training.61 Public funding accounts for 50% of the College

MSEs.

sources.

budget, the other 50% come from non-formal training

The power to take financial decisions necessarily condi-

teria. The informal sector is included in this process of

for training from the informal sector. Field studies show,

skills enhancement, and can claim recognition and cer-

especially in West African countries, that institutions work-

chance of getting craftworkers or MSE entrepreneurs to

enrol in classes, had the course content and equipment provided not been tailored to their conditions of work and production. While the financial policy adopted by the Dire

Dawa College shows that budgetary control is one of the

ingredients of reform, it has yet to be seen whether it will be more generally applied. Indeed, the Director of Education

for the Addis Ababa region interprets the texts in a more

restrictive way, deploring the fact that the institutions under his authority have too little control over their budget.

5.1.2. The TVET system: skills assessment and certification for informal sector workers

One of the basic characteristics of the current reform is the emphasis laid on training outcomes, notably the acquisition

of vocational skills. The foremost criterion for assessing the relevance of the system is no longer the level of certification

or of the diploma obtained, but rather the level of qualifica-

tion recognised for a given occupation. Qualifications will be defined within the national qualification system, recognised

acquired at school, but the capacity to do a job according to nationally defined standards and performance cri-

tions the response a training institution will give to requests

ing with the formal education system would have had no

It shows that the quality to be certified is not knowledge

tification for what it is and what it does.

It creates opportunities for workers to take up training.

This does not mean that workers will be required to start all over again or re-learn in a formal context what they

already know. Rather, with recognition of previous skills

and learning, they will build on what they know to acquire new improved skills for work.

The decision to bring the informal sector within the com-

pass of the new assessment and certification process has

undoubtedly created the right environment for promoting

the development of the informal economy in Ethiopia

through new skills acquisition and training. However, it

remains to be seen whether the reform will actually lead to

the recognition of skills in the sector.

60 This is an Algerian, not Ethiopian, term. It refers to a system whereby a training institution agrees to release trainees for paid outside work, thus linking training and production, and increasing the general budget.

61 According to the College staff interviewed, a Federal law gives the College decision-makers authority for taking decisions on the allocation of resources. The survey was not able to take this law into account. The Draft TVET Financing Framework (October 2006) currently being prepared with the support of ECBP foresees various modes of “cost sharing” in TVET.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

The importance of truly recognising acquired skills in the informal sector

The informal sector certainly constitutes a reservoir of skills

and aptitudes, and this partly explains why its contribution

learning. However, this principle of skills recognition for all

those working in the informal sector is not so obvious. It implies that all the trades in the sector be subject to qualifi-

cation standards analysis and then brought into the nation-

to the national economy is so huge in all the countries sur-

al qualification system, otherwise workers in the sector will

sion on work and the informal sector: “Many people work-

the new system, the skills recognition process must be

creativity, dynamism and innovation, and such potential

means that training schemes can then be designed to focus

veyed. As is stated in the resolution of the ILO’s 90th sesing in the informal economy have real business acumen, could flourish if certain obstacles could be removed. The

not be able to seek recognition for the work they do. With

completed before, and not after, the start of training. This either on consolidating identified skills or on meeting new

informal economy could also serve as an incubator for busi-

skills needs, rather on skills already acquired. Otherwise, it

sition.”62

more importantly, it would be tantamount to a non-recogni-

ness potential and an opportunity for on-the-job skills acqui-

By focusing on vocational skills, the Ethiopian TVET reform should encourage recognition of this reservoir of skills and thus give added value to the skills of those now working in

the informal economy. The strategic document on the

would not only represent a waste of time and money but, tion of acquired skills.

Official texts and the interviews available do indeed confirm

the change in approach brought about by the reform. On

the other hand, they do not seem to indicate that the insti-

choices of the reform specifically states that access to

gators of the reform fully understood the implications of the

those who have been trained informally, that is to say, on

the immensity of the task ahead.

assessment and certification procedures will be open to all

the job, through traditional apprenticeship or through self-

recognition/certification process or that they were aware of

5.2. The outreach of reform in the informal sector The current TVET reform may have a positive effect on

tor). In terms of impact on skills in the informal sector, the

stimulating activities in the informal sector, but certain

TVET system trained a mere 0.0009% of persons working

relevance to the sector. A comparison with the situation in

new skills acquisition and skills acquisition through on-the-

aspects may very likely reduce both its effectiveness and its the other countries studied reveals certain weaknesses and

in the sector in 2003.63 Self-training accounted for 30% of job training in family enterprise accounted for the remaining

problems in Ethiopia: the low impact of the existing training

69%.

plans to structure or improve training schemes in the infor-

These figures show clearly how little the current technical

training in relation to the overall education system.

not in itself a reason for rejecting the reform, but it does

system on the country’s economic situation, the lack of mal sector, and the continued poor image of vocational

5.2.1. The low impact of the training system on the informal sector

The TVET system as it stands today concerns approxi-

mately 3% of young people in any age group. This is equivalent to the number of young people in traditional appren-

ticeship (106,300 young people at school in 2004/2005

and vocational training impacts the informal sector. This is nevertheless raise three important questions.

Given the current scale of vocational training, it is impossible for training institutions to attract a significant

proportion of the 99% of workers who have never been

in formal training simply on the basis of the reform. It is 62 ILO, op.cit

63 Central Statistical Agency (2003) op.cit.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

only by working with enterprises in the field and by writ-

ing training action plans into local strategies and devel-

opment plans (such as at Dire Dawa) that the informal

ship as an environment for training and skills development.

Apprenticeship is approached from the angle of employers

sector and training institutions will be brought closer

and employees who have gone through the apprenticeship

In addition to private and public-sector TVET Colleges,

skills and qualifications. While apprenticeship in Ethiopia

together.

there are many community training centres (CTCs) and

system and who now need to raise their level of recognised

does not have the same dimension or innovative strengths

farming institutions that are in direct contact with the

as in Benin, Senegal or Cameroon, it is nonetheless the

could have a determining effect in the informal sector if

the job market, alongside self-training and on-the-job train-

local population. It is difficult to imagine that the reform

major source of acquired skills for young people entering

all or most of these institutions and their trainers are not

ing in a family environment. As in West African countries,

strates that only plans worked out by all the institution-

skills variously acquired in the informal sector, but also of

involved in implementing it. The Benin study demon-

this raises the question not only of how to raise the level of

al, economic, social and professional key players will

how to improve the ways of acquiring skills and know-how

only happen in Ethiopia if national policy encourages

skills and finding work. Rather than focus on the reform of

successfully drive implementation of reform. This will

for people who have no other way of acquiring job-related

the training institutions and key players to work togeth-

the education system and its capacity to re-train or qualify

effects, and will have very little impact on the target

be more constructive to concentrate on a large-scale proj-

er. Otherwise, the reform will not produce the desired

Nowhere does the reform mention traditional apprentice-

groups.

The TVET Colleges will need to have more than an

groups with no experience of formal education, would it not ect aimed at helping craftworkers and producers of goods

and services sectors to improve the skills and trade know-

open-door policy. In other words, they should be capa-

how of the young people they are responsible for?

analysing the local market. They should also define

Such a project implies that TVET reform should focus on

ble of delivering training away from the centre and

teaching approaches tailored to the particular situation

working adults and make a considerable effort to raise the

develop new forms of cognitive learning, and construct

ticeship or on-the-job training. The benefits of the project

and work patterns of workers in the informal sector,

technical and management training schemes that lead

progressively from technical skills acquisition to enterprise development and management. Given the low

impact they have on the informal sector and their lack of expertise in this domain, if the Colleges are to succeed

in the venture, they will need to work in partnership with other training institutions and in close collaboration with trainers already in contact with MSEs in the informal

sector.

5.2.2. TVET reform and the lack of recognition of skills development processes in the

informal economy

One of the problem areas of the reform is the lack of con-

skills levels of all MSE entrepreneurs who provide appren-

would be threefold:

similarly to what is planned for the weaving and clothesmaking sectors (ILO project), it would raise the quality

level of producers and products in the informal sector;

it would create opportunities for helping apprenticeship

it would enable some players to work towards extending

masters better structure the training paths for their

apprentices, and thereby provide improved training;

co-operative forms of training as proposed by the

reform, and others towards encouraging MSEs to fulfil

their role as on-the-job training providers for young people.

sideration given to training potential within the informal sec-

These remarks and observations raise the question of

ing skills acquired in the sector.

organisation of existing modes of apprenticeship in the

tor, in spite of the fact that provision is made for recognis-

ÂŠ AFD Working paper No 34

whether TVET reform can invest both in a quality-oriented

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

informal sector and in the re-organisation of the modes of

to a dead-end: pupils who obtain their diploma at 10+3

intervention of training institutions aimed at target groups in

level can now go to university and continue their stud-

this sector.

ies. However, TVET is still perceived as being reserved

for those who do not have the aptitude for going into the

5.2.3. A paradigm shift with limited effects

general studies section in secondary school. This is

In terms of the options for the informal economy, TVET

reinforced by the fact that vocational training is limited to

reform targets specific groups: entrepreneurs, the self-

jobs or posts for labourers and technicians. On the other

employed, independent traders, and domestic workers who

hand, the analysis of TVETâ&#x20AC;&#x2122;s role in developing and

engage in profit or income-generating activities. These

emerging countries shows that vocational training has

groups may be illiterate, poorly educated or trained, fre-

an attraction, and thus an effectiveness, in direct pro-

quently unemployed or underemployed, and are often seeking ways to improve their social and professional inte-

gration into the job market. These choices reflect the high

priority given to the reform of the TVET system in the fight

portion to the level of social integration of those young

men and women who have chosen that path;

for the moment, the reform does not take into account in any explicit or structured way the situation of young

against poverty and, more generally, the belief that recog-

people who drop out of school before the legal working

including informal sector workers, is a necessary condition

streets, they forget the little knowledge they acquired at

that the Ethiopian economy moves from survival and sub-

training for under-achieving young people in the context

nising and raising the skills level of all people in work, for achieving the Millennium Objectives and for ensuring

sistence to development and growth.

The analysis of the different components of the reform and

of the field studies show that there are doubts that TVET will

be able to act as significant dynamo for change. The rea-

sons given are:

the attitudes of the vocational training institutions in the education system seem to have changed, and now

more attention is paid to the choice of pupils going into

age. As a result, like most of their fellow Africans, in the

school. The absence of any thinking on pre-vocational of TVET reform, will most probably have a dampening

effect on plans to make these young people a priority

category of the target groups. It also means that complementary training schemes targeting these young

people may well be introduced when they have already

lost the basic schooling skills that would allow them to

acquire new knowledge and skills in the best possible

conditions.

These observations are not intended to pass a negative

secondary school. Entrance to TVET institutions is no

judgement on the current reform. They merely aim, by a

that pupils with the lowest grades in the class were

other countries studied, to encourage a debate about the

longer on the basis of negative selection, which meant

automatically sent there. Today, pupils can choose the

technical and vocational path of studies if that is what they want to do. Similarly, TVET training no longer leads

comparative analysis of the situation in Ethiopia and in the

best possible ways of ensuring the successful implementa-

tion and optimal impact of this reform, which has completely pertinent objectives.

5.3. The challenge of revitalising the informal sector The analysis of the strengths and weaknesses of TVET

Ethiopian authorities, with support from German develop-

on ongoing training trends, provides an opportunity to make

MSEs. She are based on the initial conclusions of the

reform in relation to the informal economy, with emphasis a number of proposals for constructive thinking and action

in order to optimise the means made available by the ÂŠ AFD Working paper No 34

ment aid agencies, for raising skills and training levels in

reports on the other countries studied, but remain firmly

rooted in Ethiopiaâ&#x20AC;&#x2122;s specific context.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

5.3.1. Looking closely at the real potential of

traditional apprenticeship and self-lear-

ning methods

The field study highlighted how difficult it is for key persons

in TVET to perceive the reality, or even the existence of tra-

ditional apprenticeship. Through the statistical analysis of

the skills sources in the informal sector,64 it also showed

that the same key persons had a very vague notion not only

of the types and level of the vocational skills of MSE

employees and entrepreneurs, but also of the way in which

two sectors. It is not clear that this assumption is really

valid, and it might be useful, as in Benin, to consider having

progressive skills development stages, or, as in Cameroon

and South Africa, to adopt a descriptive approach for specific informal sector trades and activities.

Whatever the case may be, the research departments in

the future Centres of Competence research departments

need to think about different forms of accreditation and cer-

tification that take account of a combination of factors.

these had been acquired.

These include the concrete relationship that informal sector

At present, it would seem difficult for the artisans of TVET

which their activities are similar to or different from occupa-

reform to develop relevant training for groups in the nonstructured economy without first knowing exactly how training in all its forms, be it on the job, apprenticeship, or selflearning, is provided. A good builder knows the type of soil on which he lays his foundations to support his walls.

The proposal made by the Director of the Ministry of

workers have with their knowledge and skills, the degree to tional standards and the eventual need to identify the occupations that are unique to the world of MSEs and self-

employment.

5.3.3. The need to go through with plans to

recognise skills acquired in the informal sector

Employment and Social Affairs to launch a comprehensive

The reform acknowledges that the sector offers a great pool

contribute towards a better understanding of the different

on the job. It thus constitutes something of cultural revolu-

survey on apprenticeship is more than timely. This should

activities in the sector, the various trades, and the nature of

the training and contractual linkages between master-

craftsmen and their apprentices. It will serve to identify the

cornerstones that could underpin not only more effective development of ways of passing on or cascading know-how

and skills, but also the inclusion of improved apprenticeship

within the overall reform process. The study should howev-

er widen the scope of its remit to include the different forms

of skills or, as the ILO puts it, an opportunity to acquire skills

tion because it takes into account both the relative limits of formal training schemes and the cognitive and experiential value provided by the workplace,

whether this be an

income-generating activity or a micro-enterprise focused on an exclusively local market. All the conditions are therefore

in place to give the informal economy its rightful role in the development of human resources.

of skills transfer in the informal sector. It should also extend

However, the certification of skills acquired in the workplace

based ways of learning.

simply by passing legislation, nor exclusively reserved for

its approach to apprenticeship to forms of self- and family5.3.2. The need for a qualitative analysis of informal economy occupations

The implementation of the vocational accreditation and cer-

tification process on the basis of occupational standards

is not self-evident. It can be neither successfully introduced

participants in TVET system training courses. It must be

able to work as a tool for motivating people to train more,

and thus be included in any activities that aim to enhance

the role effectively played by MSEs in production and serv-

ices in order to provide incentives for their skills develop-

applies to both the informal and formal sectors. However,

ment. The Benin precedent, with the setting up of occupa-

standards and establishing Centres of Competence, this

ly given that both FEMSEDA and the REMSEDAs are

given the current status of the project for identifying the

assumes that experience acquired in the informal sector will

be validated on the basis of trades that are common to the ÂŠ AFD Working paper No 34

tional centres, may serve as a point of reference, especial-

64 Central Statistical Agency (2003), op.cit.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

already acting as places for enhancing and promoting

MSEs. Certification schemes for informal sector workers

will only be effective if they are included in an action plan

union due to their lack of organisation and the instability of their work. Accordingly, they also find it difficult to represent these workers’ interests as far as their skills and training

that acknowledges the informal economy’s contribution to

needs are concerned.

tiative, creativity and innovation, as the ILO puts it, and thus

The meeting with the Chamber of Commerce shed light on

shortages that prevent it from making full use of its capaci-

the creation of sectoral associations at national, regional

development and employment policies, its capacity for inialso the skills development of its workers and the skills

the existence of Directive No.341/2002, which authorises

ties. In the absence of such an overarching plan, it is high-

and woreda level. These, however, have to be affiliated to

in the Centres of Competence.

that sets them more on a level of authorised and supervised

ly unlikely that informal sector workers will seek certification

5.3.4. The need to strengthen sectoral, territorial and institutional dynamics

The current reform is creating multi-partner TVET advisory

boards at federal, regional and local levels, alongside the

the chambers of commerce. They also have a legal status organisations, rather than on a level of real trade associa-

tions able to act as a driving force for analysis, initiative and decision-making in fields such as skills and training needs.

In comparison to the other countries surveyed, Ethiopia

training centres. It also provides for the creation of working

lacks the sectoral dynamics that have inspired and under-

the strategic planning and funding of the national qualifica-

ing and developing traditional apprenticeship. The same

apprenticeship, guidance, curriculum development, etc. All

invest in the MSEs’ priority skill needs, and also motivated

committees with the same partners, which will be active in

tions framework, non-formal training, co-operative training,

of these boards and committees include at least ten mem-

bers representing the authorities, the economic and social

pinned the national TVET reform in Benin, which is enhanc-

dynamics inspired South Africa’s sectoral skills funds to

Benin craftworkers to design and develop forms and for-

mats for youth apprenticeship suited to initial educational

partners, users (parents and students), training providers

levels and the specific nature of the trades to be acquired.

this rather formal and established approach to representa-

Such sectoral dynamics would make a vital contribution to

ing on the definition of local development policies and the

is being launched in their interest.

and so on. The field survey made it possible to go beyond

tion and to identify the territorial partnerships that are workorganisation of training centres’ training provision.

However, neither the documentary analysis nor the numer-

ous meetings in the capital and provinces brought to light

enabling MSEs to take on responsibility for the reform that

5.3.5. How to have informal sector workers take on responsibility for their own training and skills

any Ethiopian sectoral/trade organisations sufficiently influ-

The information provided on training schemes outside the

sentative participation in defining the specifics of given pro-

the informal sector is based on learning processes that dif-

ential to defend their members’ interests and their reprefessions along with their skills and training needs.

The employers’ federation emphasised both its wish to encourage the development of sectoral bodies and its prob-

lems in bringing them together, given that the public author-

ities have attributed this task to the Chamber of Commerce. The Ethiopian trade union confederation spoke of the problems it has in getting informal economy workers to join a © AFD Working paper No 34

TVET area reveals the extent to which skills development in fer from those in the established training system, whether

formal or non-formal. The example of schemes for women

shows how important it is to run awareness-raising activities prior to training. REMSEDA’s training scheme, although

run by TVET College trainers, proves how useful it is to link

training activities to business development, which increasingly requires new technical knowledge and new management skills. The agricultural training model, which brings together model farmers and copy farmers by cascading

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

5. Future developments and actions

experiences and activities, clearly emphasises that peer-topeer relationships are much more effective than those between trainers and trainees.

This small selection of examples offers just a glimpse of

what is really happening when it comes to cascading and

transferring experience in the informal sector. However,

there is no analysis of self-learning routes, such as the apprentices’ “seeing, listening and acting” approach in their

relationship with the apprenticeship master, or the stone-

cutters route, where learning and doing are closely linked,

as well as the experiments of profit-making centres.

All of these examples show that training in the informal sector is truly effective when it develops and rolls out training

models that have been instigated in the informal sector

itself, and when it gives those working in the sector the

opportunity to become stakeholders in their own skills development.

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

In conclusion: the need to refocus the reform on grassroots initiatives

Ethiopia is presently transforming its whole TVET model.

sector to move away from being a subsistence economy

The current reform has provided a structured basis for all

towards growth and development.

access to the benefits of training and qualifications. It has

However, as the survey demonstrated, there is a lack of

the conditions needed to give informal economy workers

effectively established a virtual right for such people to ben-

synergy between the legislatorsâ&#x20AC;&#x2122; intentions and people

for students in formal training establishments. They can

the Dire Dawa region has proved by setting the example of

efit from all the advantages that were previously reserved

working at grassroots level. Such synergy is possible, as

now effectively access certification and qualifications. They

the various ways and means that can be used.

tailored to their initial educational level and working circum-

into its own priorities and policies the potential contribution

that will lead to training in business creation, as well as

approaches being developed in the informal sector, and if it

are totally free to take part in flexible and modular training

stances. They even have the possibility of choosing options

Nonetheless, it will only be effective if the reform integrates

of existing training schemes, pilot projects, and innovative

financial and technical support. Everything is therefore in

accepts the need to refocus its institutional vision by

efforts to reduce poverty. This process will help the informal

skills and qualification levels.

place to ensure that the reform of the system contributes to

ÂŠ AFD Working paper No 34

empowering informal sector workers to improve their own

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

Appendix: recommendations and proposals for action

Having analysed the strengths and weaknesses of the

TVET reform, it is important now to make some recommendations and proposals for action in order to maximise the effectiveness of the objectives and measures introduced by

the reform. The following recommendations and proposals

if the authorities do not decide to draw up a precise inventory of existing skills on which to base a priority action plan.

1. Gain a better understanding of current practice in tradi-

tional apprenticeship schemes, and improve the organi-

could be implemented in a three-step programme.

sation of such schemes, in particular to help apprenticeship mentors improve the training they provide for young

Step 1: Draw up an inventory of existing skills in the informal sector

A statistical analysis of the training routes for informal sec-

apprentices.

2. Identify occupations in the informal economy that have

high employment potential and include them, if they are

tor workers shows that more than 99% of them are trained

not already listed, in the proposed national standardised

schemes or on-the-job training. However, we have no clear

3. Introduce a methodology for accrediting prior skills,

in family situations, through traditional apprenticeship

picture of the skills that actually exist in the informal sector

directory of skills.

which is adapted to the illiteracy or low level of educa-

in Ethiopia today.

There is no real understanding of the role and place of

No assessment has been made of existing skills or skills

traditional apprenticeship.

that need to be developed by informal sector workers in

those sectors identified by the PASDEP as having

potential for employment growth (certain agricultural

tor.

4. Define the concrete measures needed to increase these workersâ&#x20AC;&#x2122; employment skills: what types of training, in

what fields, and aiming at what outcomes?

Step 2: Help informal sector workers to plan their own skills development

occupations, clothes-making, metal-working, the con-

Overall, the country surveys have shown that initiatives in

opment of skills in these sectors would improve occu-

in the sector are involved in their own skills development.

of the products produced and services provided.

mal sector is concerned will depend on a certain number of

struction industry, intra-urban services, etc.). The devel-

pational profitability and enhance the marketing quality

tion of the majority of those working in the informal sec-

There is no job description of the occupations that are

predominant in the informal sector or analysis of the

way in which such descriptions could be recognised

under the national qualifications system.

All these elements are prerequisites for the certification and

skills enhancement of informal sector workers. It is difficult

to see, however, how they could be taken into consideration ÂŠ AFD Working paper No 34

the informal sector are only really effective if those working

Consequently, the success of the reform as far as the infor-

prerequisites.

If the reform is to reach the set target group, it would

appear desirable, if not indispensable, that the profes-

sional organisations of informal sector workers be involved in the implementation of the reform. The survey has shown, however, that the consultation bodies,

whether at national, regional or local level, do not suffi-

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

Appendix: recommendations and proposals for action

ciently involve representatives from the different categories of craft workers, MSE associations (manufactur-

and initiatives in the informal sector

ating activities. This makes it difficult for these bodies to

a great many initiatives aimed at informal sector workers.

ing and services) or women who create income-genertake into consideration the actual skills demands of the

90% of informal sector workers who make up the

Step 3: Foster synergies between stakeholders

Ethiopian labour market.

A comparative analysis between Ethiopia and other

The field survey has highlighted the existence in Ethiopia of However, information about the actions carried out is insufficiently shared among their instigators, and there is even less interaction between them concerning the outcomes

and impacts. This dispersal of efforts and means poses a

countries such as Benin or South Africa shows that rais-

problem; the analysis of the situation in the various coun-

prises or small production or service units requires the

between public and private players in the field of training in

the-job skills development, while progressively ensuring

and profitability increased. Those in charge of the TVET

ing the level of skills of those working in micro-enter-

introduction of specific training measures entailing on-

that such skills development is brought into line with

more structured and effective methods of apprentice-

tries shows that a shared vision based on a partnership

the informal sector is needed if skills are to be improved reform would be well advised to take the following steps:

ship. Although the reform intends to recognise skills

1. make an inventory of all initiatives aimed at upgrading

any means for designing and developing training con-

duction and services, and analyse the possibilities for

acquired in this way, it still does not explicitly envisage

tent that would enable traditional apprenticeship to

skills in the informal sector and improving quality in pro-

synergies and complementarities;

evolve into a real dual-type training system in which the-

2. set up a co-ordination and study group bringing togeth-

various methods of peer-to-peer training in order to

donors, national and international government agencies

ory and practice are combined, or which would help the

progress towards a more structured form of tutored learning or mentorship.

er the national authorities, bilateral and multilateral

and NGOs in order to establish a minimum of co-opera-

tion in the implementation of the various different projects and programmes;

The fact that informal sector workers have in a sense been

3. draw on the conclusions of this report and, in particular,

tors of the reform to question whether this sector will in fact

German and French co-operation agencies, and invite

left outside the current reform process has led the instiga-

be able to move from a paradigm of survival to an econom-

ic paradigm of growth and development. If they do want to achieve this, they will need to implement the following priorities:

1. support the informal sectorâ&#x20AC;&#x2122;s professional associations by actively involving them in the definition of their own skills needs;

on the partnership it has established between the

this partnership to work together in moving on from a

stage of analysis and observation to one of co-ordinated

and effective action.

We recommend that the GTZ and AFD give a joint presentation, in Addis Ababa, of the conclusions of the study on training in the informal sector in the seven African countries

(South Africa, Angola, Benin, Cameroon, Ethiopia, Morocco

2. compile a compendium of good practice in the acquisi-

and Senegal), and that this lead to a debate, under the

and look at how such practice could be applied to other

cation and training, on the ways and means of stimulating

3. give thought to training schemes for managers of micro-

this perspective, it would be useful to organise a joint work-

tion of knowledge and skills outside the TVET system workers in the informal economy;

responsibility of the Ethiopian authorities in charge of edu-

the informal sector in Ethiopia through a reform of TVET. In

enterprises and SMEs enabling them to enhance their

shop between GTZ and AFD, in the framework of the ECBP,

training for the young trainees under their responsibility.

results of this report and the recommendations it makes.

own professional skills while providing the best possible

ÂŠ AFD Working paper No 34

to be held during the first six months of 2007, to discuss the

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

List of acronyms and abbreviations

AFD BMZ CIM CSTC

DED

ECBP

Agence Française de Développement

French Development Agency

Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung

German Ministry for Economic Co-operation and Development Center für Internationale Migration

Centre for International Migration

Community Skills Training Centre

Deutscher Entwicklungsdienst

German Development Service

Engineering Capacity Building Program

ESDP

Education Sector Development Program

FEMSEDA

Federal Micro and Small Enterprises Development Agency enterprises

FAL

Functional Adult Literacy

GDP

Gross domestic product

GTZ

Gesellschaft für technische Zusammenarbeit

GNI

HDI

IIZ/DW

Gross National Income

German Agency for Technical Co-operation Human Development Indicator

OrganizationInstitut für internationale Zusammenarbeit des Deutschen Volkshochschul-Verbandes

Institute for International Co-operation of the German Adult Education Association

ILO

International Labour Organisation

MSEs

Micro and small enterprises

OECD

Organisation for Economic Co-operation and Development

REMSEDA

Regional Micro and Small Enterprises Development Agencies

LFS

NGOs

PASDEP SES

TVET

UNDP

UNESCO

Labour Force Survey

Non-governmental organisation

Plan for Accelerated and Sustained Development to End Poverty Senior Expert Service

Technical and Vocational Education and Training United Nations Development Programme

United Nations Organisation for Education, Science and Culture

Vocational Training in the Informal Sector - Report on the Ethiopia Field Survey

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